Foreign supermarkets in China are still selling cigarettes despite a ban imposed on them by a regulation issued on 7 March 2007.

According to the new rules, foreign-funded commercial enterprises, including joint ventures, cannot conduct retail or wholesale business in tobacco products.
Though the new regulation annuls the one issued by the State Tobacco Monopoly Administration in 1998, it has some grey areas that are being exploited by enterprises such as Wal-Mart, Carrefour and Ito Yokado.
The National Development and Reform Commission (NDRC) regulation, applicable to Chinese-foreign joint ventures, partnerships and solely foreign-owned enterprises, bans cigarette sales through franchises and other divisions of supermarkets. It bans foreign companies from retailing or wholesaling cigarettes, too, but does not specify what firms whose licenses are still valid should do.
The STMA has, however, said that such licenses will not be renewed after 2008.
It remains unclear whether leasing out counters was the right approach for the supermarket chains.