| Publication |
2014.
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| Summary/Abstract |
Monopolistic Industries IN CHINA have been criticized heavily in recent years for their unrestrained pursuit of interests at the expense of the public or other parties.1 Such criticisms are not unfounded, as exemplified by the Chinese oil industry. In China, the China National Petroleum Corporation and the China Petroleum and Chemical Corporation, together with the China National Offshore Oil Corporation, have monopolized the oil supply in the country.2 In 2006, China had approximately 660 privately owned oil wholesale enterprises and 45,060 privately owned gas stations. However, by early 2008, two thirds of the wholesale enterprises and one third of the gas stations were closed, and another 10,000 gas stations lost money. This situation was a result of a monopoly of the oil industry by state-owned companies. When oil prices were high, the China National Petroleum Corporation and China Petroleum and Chemical Corporation refused to provide oil to privately owned companies. The national government agencies repeatedly urged the two companies to provide oil to private businesses. The premier and vice premiers also gave 14 instructions to require them to provide oil. But all of these were largely ignored by the two companies
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