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Petroleum, petrochemical industry under strict control

By Du Xiaoli (chinadaily.com.cn)
Updated: 2007-01-10 08:37

Related publication: Related readings: Nation lists sectors critical to national economy China sets up second petroleum exchange China prepares for petroleum reserve center 2004-2005 Annual Report on China's Petroleum Industry

China will keep absolute control over seven industries including power, petroleum and telecom, according to the State-owned Assets Supervision and Administration Commission.

The State capital's absolute control of the petroleum and petrochemical industries means that foreign capital may participate in the development of some projects in the upstream fields of petroleum and natural gas such as reconnaissance and exploitation, but it is impossible for foreign capital to get controlling shares, said insiders.

In addition, the State will control mid-stream businesses absolutely while downstream businesses will be encouraged to introduce foreign capital.

......

The full text is available in the January Issue ofChina Energy.