An Analysis of the Dynamic Developments within the Chinese Petroleum and Petrochemical Industry

Abstract

In 1998, when the Chinese government opened it's curtain of restrictions to allow merger and acquisition, no one could predict the future of the petroleum and petrochemical industry. The Government, through merger and acquisition, raised and rebuilt a multitude of related companies to form two giants; the 'China Petroleum Corporation' (CNPC), and the 'China Petrochemical Corporation' (SINOPEC). These huge corporations each employ approximately 1,500,000 workers and earn revenues of approximately 43,000 million dollars, US, yearly. Thus, in terms of world-wide ranking, this 'Major' has emerged 10th. in order of importance. The upgrade of the industry has made it ready for the 21st. century responding to the needs of the new global economy. China's petroleum and petrochemical industry is one of the fundamental industries along with electronics and information technology, machine and automobile, civil engineering and construction.

This paper shows how State organized improvements in the petroleum and petrochemical industry produced dynamic growth, and analyses the relationship between this organized improvement, and the government's aim of establishing a modern company system. The Analysis is based on past and present circumstances, and developments within the Chinese petroleum and petrochemical industry.