Avon keeps tabs on China.

* Avon Products Inc. is watching developments in China closely to see if the government will again allow direct sales. China banned direct sales in the spring of 1998 after the practice, which involves a sales force selling directly to the consumer, was abused, according to government officials.

Avon already has a presence in China, but uses stores to sell its products. Early indications are the Chinese government is considering a simplistic form of direct selling, which would be very close to Avon's model in many countries, according to Avon's chief financial officer, Robert Corti.