Joining Wto On China's Oil Industry And Strategic Countermeasures

Based on what is related to petroleum and petrochemical sectors in the agreements concerning China's entry into World Trade Organization, this paper makes comprehensive analysis on the influence of China's WTO membership on the country's petroleum industry with clarification of the opportunities and challenge confronting the Chinese petroleum industry. The paper also focuses on how to develop China's oil multinationals for involvement in international oil market competition, analyzes the shortcomings of China's petroleum industrial management system, clarifies the importance of restructuring the country's oil enterprises and comes up with the strategic goals, tasks and measures for restructuring of the Chinese oil industry. With the experienced borrowed from foreign giant oil companies, the paper proposes eight major development strategies for China's oil industry following the Country's entry into WTO.This paper consists of three chapters. The first chapter elaborates on nine areas concerning oil and petrochemical businesses specified in WTO entry agreement, such as reduction of tariffs, elimination of non-tariff barriers like quota license, governmental and non-governmental trade of crude and oil products, tariff quota on fertilizer imports, liberalization of distribution service, oil field service, transportation and warehouse service and specialized service for engineering. Based on those areas, it makes detailed analysis of the influence from China's WTO entry on the country's petroleum industry, including the in-depth discussion of oil refining business, distribution of oil products as well as the oil engineering and technical services, which are substantially under the influence of the country's access into WTO. The first chapter also describes the challenges in such areas as China's oil industrial system and mechanism, management level, competitiveness, exploration and development technology and human resources.China's petroleum industry is first exposed to the challenge to its industrial system and the internal mechanism of enterprises after the country joined WTO. Therefore, the second chapter analyzes the shortcomings of the current oil industrial management system and points out that the long-term planning economy has caused no separation between the administration and enterprises, inappropriate management system of resources, lack of unified management for foreign cooperation, unreasonable industrial structure and isolation of the upstream and downstream businesses. Then it stresses the necessity of China's oil industrial restructuring and specifies the strategic targets, tasks and measures for the oil enterprises to reform their internal system.As the emphasis of this paper, the third chapter focuses on how to build the Chinese oil enterprises into giant oil companies to meet the market economy so and international competition. With adoption of comparison study method, this chapter studies the theories concerning the corporate strategic management and borrows experiences in managerial pattern and decision-making pattern from foreign oil giants. Facing the increasingly intense competition and the rising demand for energy with large foreign oil companies access into the Chinese oil market, it is necessary to boost the competitiveness of China's oil enterprises so that they can take advantage of the resources and market both at home and abroad and implement the WTO-oriented development strategies, including integration strategy, diversification strategy, conglomeration strategy, internationalization strategy, petroleum price strategy, oil refining and distribution strategy, innovation strategy and corporate image strategy.Undoubtedly, China's WTO membership has provided a good opportunity for the country todeepen its reform and open wider the outside world. The Chinese petroleum industry will certainly take an active position in the international oil market so long as it follows a workable development strategy with its key competitiveness being steadily raised.