BEIJING, April 14 (Reuters) - Restaurants, bars and Internet cafes in Beijing have been exempted from a proposed public smoking ban in response to concerns expressed by business owners, state media said on Monday.

The venues will only be asked to separate smoking and non-smoking areas from May 1 as part of the new regulations, the China Daily said.

"Owners of Chinese restaurants -- both big and small -- worried the plan would hurt their business," the newspaper said, quoting a Beijing official.

Beijing had planned to ban or restrict smoking in most public places as part of its pledge to hold a smoke-free Olympics.

The amended rules mean only government offices, schools, museums, hospitals and sports venues will be designated smoke-free areas.

The Chinese are the world's most enthusiastic smokers, with a growing market of more than 350 million, making it a magnet for cigarette companies and a focus of international health concerns.

Beijing banned smoking in taxis in October and launched an awareness drive targeting businesses and residents last year. But resistance to the campaign has been fierce. (Reporting by Nick Macfie; Editing by Sanjeev Miglani)

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