China grants crude import license to non-state company

|By:, SA News Editor

In a grudging first step towards opening its state-dominated oil sector, China has granted a crude import license to non-state-owned Guanghui Energy.

China's Ministry of Commerce stopped short of truly opening the market, since the new license does not actively pose a threat to China’s Sinopec (NYSE:SNP) and PetroChina (NYSE:PTR).

Included in its WTO commitments, China allocates about 10% of its crude imports to non-state traders, but additional paperwork limits their competitiveness.

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