China further weakens oil monopoly
26 March 2007
New government guidelines released by the Ministry of Commerce over the
weekend further break up China's monopoly in the wholesale business of
crude and processed oil, state media
reported. The new rules outline how domestic and overseas companies
can apply to enter the crude and processed oil market. Applications
from domestic companies would take about 40 days to process, while
overseas companies would need about four months. However, state media claimed the rules offer a level playing field to foreign and foreign-funded
companies in the sector. At the same time, the threshold for entry by
domestic companies has been lowered and restrictions on
the number of gas stations a private company can own has been lifted.