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The "new 36" recently introduced by the State Council has once again boosted the private economy. From August 8th to August 8th, at the 2010 China private-owned petrochemical industry development summit forum held in Rizhao City, Shandong Province, Zhao Youshan, chairman of the China Merchants Association Petroleum Distribution Committee, stated that at present, the organization is actively promoting two key tasks. One is to include the idle oil depots of private enterprises in the national commercial reserves, and the other is to strive to reduce the consumption tax on fuel oil for fine chemical companies.
In May this year, the State Council issued the "Several Opinions on Encouraging and Guiding the Healthy Development of Private Investment" (abbreviated as "The New 36 Article"), encouraging private capital to participate in the construction of oil and natural gas, supporting private capital in the exploration and development of oil and gas, and the state-owned oil companies. Cooperate in oil and gas exploration and development, and support the participation of private capital in the construction of oil and gas storage, pipeline transportation facilities and networks. On July 26, the State Council issued the "Notice of Encouraging and Guiding the Key Work of the Healthy Development of Private Investment", which is the implementation method of the "new 36". This is regarded as the biggest measure for the Chinese government to encourage the private economy following the promulgation of the 36 non-public laws by the central government five years ago. The sunshine of the policy has obviously been invested in the privately-owned petrochemical industry.
Zhao Youshan said that in recent days, six private oil companies have participated in the National Petroleum Reserve Center’s use of social storage for storing oil for the first time, and the recent opening of the national oil commercial reserve system is also expected to open to private enterprises. This means that the private oil industry has repeatedly put forward the proposal of “storing oil to the peopleâ€, that is, the 36 million tons of oil tanks that are left idle by private enterprises are included in the national oil commercial reserve construction. They have finally been adopted by high-level national governments and related policies will be introduced soon. With this reserve system, private oil companies will be able to successfully obtain the stable source of crude oil they have been looking forward to and strive for for many years.
In addition to private oil companies, private petrochemical companies are also expected to receive new support policies in the near future. Fine chemical companies have been clamoring for a strong demand for fuel oil consumption tax relief. They have received the attention and instructions from the top leadership of the central government, and relevant policies will soon be introduced. Zhao Youshan told reporters with certainty.
According to reports, since 2009, due to the state's reform of refined oil prices, fuel oil has been levied as a refined oil and excise duties. The tax burden has soared by nearly 10 times, adding to the cost burden on fine chemical companies and making them unbearable. For this reason, the China Petroleum Exporting Committee of the China Business Confederation reported this situation to the State Council and the Ministry of Finance and requested the fine chemical companies to reduce the consumption tax on fuel oil so that fine chemical companies can enjoy fair treatment.
Since the international financial crisis, new changes have taken place in China's oil circulation sector. Oil source resources have become more relaxed, and the market has been rapidly declining. This has played a greater role in the survival of the entire private petrochemical enterprises. Participants believed that in the face of the new situation, the private petrochemical enterprises should further solve the development issues. It is not impossible to find a solution, such as large-scale integration, the establishment of a large-scale international group and a joint-stock company, rational use of various conditions, and rapid development. The way to grow is to take the initiative in market competition. At present, it is urgent for government agencies, industry associations, and enterprises to work together to promote cooperation.
Coincidentally, almost simultaneously with the development of China's private petrochemical industry development summit forum, CNPC organized a large-scale cooperation fair in Zhejiang for a number of private enterprises in Zhejiang to implement the “new 36 articleâ€. Private enterprises throw out branches. On August 5th, Li Xinhua, deputy general manager of CNPC, proposed at the meeting that they welcome private enterprises entering the oil and gas sector. At present, CNPC has launched a total of 119 joint venture projects to be implemented in cooperation with domestic capital during the “Twelfth Five-Year Plan†period, with a total investment of 598.5 billion yuan. Except for China Petroleum’s investment of 386.8 billion yuan, it intends to absorb domestic investment of 211.7 billion yuan, including Overseas exploration and development, oil refining and chemicals, refined oil sales, natural gas and management.
Industry analysts believe that the "new 36" further clarifies the development direction of China's private petrochemical companies, and will create favorable conditions for building a harmonious development environment for China's oil industry and achieving a win-win situation for state-owned and private enterprises.
In May this year, the State Council issued the "Several Opinions on Encouraging and Guiding the Healthy Development of Private Investment" (abbreviated as "The New 36 Article"), encouraging private capital to participate in the construction of oil and natural gas, supporting private capital in the exploration and development of oil and gas, and the state-owned oil companies. Cooperate in oil and gas exploration and development, and support the participation of private capital in the construction of oil and gas storage, pipeline transportation facilities and networks. On July 26, the State Council issued the "Notice of Encouraging and Guiding the Key Work of the Healthy Development of Private Investment", which is the implementation method of the "new 36". This is regarded as the biggest measure for the Chinese government to encourage the private economy following the promulgation of the 36 non-public laws by the central government five years ago. The sunshine of the policy has obviously been invested in the privately-owned petrochemical industry.
Zhao Youshan said that in recent days, six private oil companies have participated in the National Petroleum Reserve Center’s use of social storage for storing oil for the first time, and the recent opening of the national oil commercial reserve system is also expected to open to private enterprises. This means that the private oil industry has repeatedly put forward the proposal of “storing oil to the peopleâ€, that is, the 36 million tons of oil tanks that are left idle by private enterprises are included in the national oil commercial reserve construction. They have finally been adopted by high-level national governments and related policies will be introduced soon. With this reserve system, private oil companies will be able to successfully obtain the stable source of crude oil they have been looking forward to and strive for for many years.
In addition to private oil companies, private petrochemical companies are also expected to receive new support policies in the near future. Fine chemical companies have been clamoring for a strong demand for fuel oil consumption tax relief. They have received the attention and instructions from the top leadership of the central government, and relevant policies will soon be introduced. Zhao Youshan told reporters with certainty.
According to reports, since 2009, due to the state's reform of refined oil prices, fuel oil has been levied as a refined oil and excise duties. The tax burden has soared by nearly 10 times, adding to the cost burden on fine chemical companies and making them unbearable. For this reason, the China Petroleum Exporting Committee of the China Business Confederation reported this situation to the State Council and the Ministry of Finance and requested the fine chemical companies to reduce the consumption tax on fuel oil so that fine chemical companies can enjoy fair treatment.
Since the international financial crisis, new changes have taken place in China's oil circulation sector. Oil source resources have become more relaxed, and the market has been rapidly declining. This has played a greater role in the survival of the entire private petrochemical enterprises. Participants believed that in the face of the new situation, the private petrochemical enterprises should further solve the development issues. It is not impossible to find a solution, such as large-scale integration, the establishment of a large-scale international group and a joint-stock company, rational use of various conditions, and rapid development. The way to grow is to take the initiative in market competition. At present, it is urgent for government agencies, industry associations, and enterprises to work together to promote cooperation.
Coincidentally, almost simultaneously with the development of China's private petrochemical industry development summit forum, CNPC organized a large-scale cooperation fair in Zhejiang for a number of private enterprises in Zhejiang to implement the “new 36 articleâ€. Private enterprises throw out branches. On August 5th, Li Xinhua, deputy general manager of CNPC, proposed at the meeting that they welcome private enterprises entering the oil and gas sector. At present, CNPC has launched a total of 119 joint venture projects to be implemented in cooperation with domestic capital during the “Twelfth Five-Year Plan†period, with a total investment of 598.5 billion yuan. Except for China Petroleum’s investment of 386.8 billion yuan, it intends to absorb domestic investment of 211.7 billion yuan, including Overseas exploration and development, oil refining and chemicals, refined oil sales, natural gas and management.
Industry analysts believe that the "new 36" further clarifies the development direction of China's private petrochemical companies, and will create favorable conditions for building a harmonious development environment for China's oil industry and achieving a win-win situation for state-owned and private enterprises.
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