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Upon the wholly opening of China's oil market, China established on Sunday an industrial association for oil circulation.

 

The Petroleum Circulation Committee under the China General Chamber of Commerce (CGCC) is a national organization for petroleum enterprises of private, state-owned or foreign ownership, said He Jihai, chairman of the CGCC.

 

The committee will be endeavored to give suggestions for policy formulation and legislation of the government, establishing industrial standard, offering services including information, consultation and training for members and assisting in market order establishment and maintenance, said Zhao Youshan, director of the committee.

 

According to regulations of the CGCC, any legal enterprises, institutions and individuals doing petroleum business in China could apply for membership of the committee.

 

The government promised to open the market of crude oil and refined oil to foreign capital on Dec. 11 under its commitments to the World Trade Organization (WTO).

 

The Ministry of Commerce (MOC) recently issued two regulations on the management of the crude oil and refined oil market respectively.

 

By clearly defining the qualifications of enterprises, the regulations would promote the establishment of a competitive pattern of SOEs, foreign companies and private enterprises in both sectors, said Chong Quan, spokesman of the MOC.

 

The establishment of the oil circulation committee will offer a commercial platform for cooperation and communication of enterprises in the oil sector and will be helpful for the healthy development of the market, said experts.

 

According to statistics, China has over 7000 oil wholesale enterprises with private firms accounting for one-third of the total.

 

(Xinhua News Agency December 18, 2006)