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China’s Ministry of Commerce issued an announcement on September 30 stating that China’s import quota for non-state trading of crude oil in 2005 was 12.6 million tons, and the import quota for non-state-owned trade of refined oil was 7 million tons. According to an external news report, the Ministry of Commerce of the People's Republic of China announced on September 30 the import quota for non-state trading of crude oil in 2005 and the import quota for non-state trading of refined oil in 2005. According to the announcement, China's 2005 non-state trading quota for crude oil was 12.6 million tons, and the import quota for non-state-owned trade of refined oil was 7 million tons. Product oils include gasoline, aviation kerosene, diesel, naphtha, fuel oil, and wax oil. The Chinese government stipulates that companies other than approved state-owned trading companies and non-state-owned trading companies may not engage in the import of crude oil or refined oil. Since January 1, 2004, China has cancelled import quotas for state-owned trading companies of crude oil and refined oil, making it no longer subject to quotas for crude oil and refined oil. In 2004, China plans to issue non-state trading crude oil import quota of 10.95 million tons, and refined oil non-state trading import quota of 6.1 million tons. China’s Ministry of Commerce and its predecessor, the Ministry of Foreign Trade and Economic Cooperation, have already approved three batches of non-state trading enterprises for crude oil refined oil. Among them, there are 16 non-state trading crude oil enterprises and 23 non-state trading enterprises of refined oil. China currently only approves five state-owned trading companies for the import and export of crude oil refined products. They are: China International Petroleum & Chemical Co., Ltd., China United Petroleum Corporation, China Sinochem Corporation, Zhuhai Zhenyu Corporation and CNOOC Sinopec United International Trade limited liability company. Among them, China International Petrochemical United Corporation is a joint venture between China Petrochemical Corporation and Sinochem Corporation, and is controlled by China Petrochemical Corporation. China United Petroleum Corporation is a joint venture between China National Petroleum Corporation and China National Chemical Corporation. CNOOC Sinopec United International Trade Co., Ltd. is a joint venture between China National Offshore Oil Corporation and China Petroleum & Chemical Corporation. Crude oil imports from import and export state-owned trading companies account for about 90% of China's crude oil imports each year. According to China’s commitment to join the World Trade Organization, China must increase the amount of crude oil imports from companies involved in non-state trading, helping China to relax its supervision of the crude oil market by introducing more market participants. According to the WTO's definition, non-state trading refers to trade that is not controlled by the government. Participants in such trade usually include small-scale trading companies that are end-user crude oil agents. In January-August 2004, China imported a total of 79.96 million tons of crude oil, an increase of 39.3% over the same period of 2003; during the same period, it imported 25.31 million tons of refined oil, an increase of 36.4% over the same period of 2003.
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