On September 1, the "2007 High-end Forum on Development of
Chinese Oil Distribution Industry" was held in Beijing. Experts
attending the forum pointed out that there is still a severe
monopoly in the Chinese oil industry and it should be broken as
soon as possible.
Zhao Youshan, director of the Petroleum Circulation Committee
under China General Chamber of Commerce (CGCC) revealed that the
Ministry of Commerce (MOC) has lifted the restrictions on
wholesales of crude oil and oil products. But most of Chinese
private oil enterprises still find it very hard to survive because
of very limited oil supplies and high market-access standards.
Statistics show that the number of private wholesale providers has
declined sharply from more than 3,340 in 1998 to 663 at
present.
An oil businessman from Jilin Province did not have much faith
in the newly issued Anti-monopoly Law. He said this law
would not have substantial influence on the oil industry. In his
opinion, in order to get enough oil supplies, he needs to maintain
good relations with China's two dominant oil giants, PetroChina and
Sinopec rather than turn against them by suing them for
monopoly.
Ren Yuling, a counselor from the State Council, said it is not
market competition but government funds, privileges and dominance
over resources that have made Chinese monopolistic enterprises
strong.
He suggested that the government take decisive measures by
selling 10 million to 20 million tons of oil products per year to
private oil distribution companies at reasonable prices. He said
such amounts, accounting for just 10 percent of China's annual oil
product supplies, would not affect the interests of oil giants
significantly if it supplied private oil businesses.
For more details, please read the full story in Chinese. (http://www.bbtnews.com.cn/news/cyyj/2681.shtml)
(China.org.cn September 3 2007)
