Tesco may cancel move into China

Tesco bosses have said they may scrap plans to open in China if they cannot agree a deal to enter the country by next year.

The supermarket said it has been researching China for three years, but chairman Sir Terry Leahy said that if a decision is not made in the near future the move may be put on hold.

The store’s chairman played down recent speculation that Tesco was poised to sign a joint-venture deal with Taiwan-based Ting Hsin International, the owner of the 25-strong chain of Hymart-Hymall hypermarkets in mainland China. He said: “We have had discussions with Hymart, but it would be premature to conclude that we will go into a joint venture with them.”

Leahy added that he was encouraged by the way rules governing overseas businesses entering China were changing. He said: "Things are moving on apace. Gradually it’s being opened up to foreign retailers, which is encouraging."