BP aims to open more gas stations in China, as the country has further opened up its market to foreign companies.
China's new version of negative list for foreign investment, effective since July 28, has broadened the market access to foreign investment in the primary, secondary and tertiary industries. It details 22 opening-up measures in such areas as finance, transportation, professional services, infrastructure, energy, resources and agriculture.
Thanks to the new list, foreign-invested companies are allowed to open over 30 chain petrol stations funded by the same foreign investors without partnership with Chinese companies.
"[At] BP, we really welcome this open, transparent and progressive market process, and we really think this is a good step for Chinese government to bring these incredible good measures for foreign investors to be more committed into China. And we are very encouraged by it," said Yang Xiaoping, Chairwoman of the BP China.
Through partnerships with China's state-owned oil companies like PetroChina, BP currently operates over 740 dual-branded gas stations in southeast China, serving about 400,000 customers every day. And 1,000 more dual-branded or single-branded ones will be added in the coming five years.
"We are very committed to introducing premium retail offers to the Chinese customers and satisfying the growing demand of Chinese consumers. We bring a wealth of retail expertise with a set of differentiated offers of high-quality products and services," said Shen Ming, General Manager of the BP PetroChina Petroleum - a joint venture formed in 2001.
Despite this, many suspect this new policy is only symbolic. Some experts take issue with that, saying this policy will bring solid benefits to all parties.
"The reform and opening up is key to the nation's reform. Under such a background, I believe China's move to open its market more in the petrol retail industry is conducive to the upgrading of China's petrol retail sector, especially to lowering China's oil prices, so our domestic oil prices can be better docked with that abroad and reflect the supply and demand scenario of international petrol resources," said Liu Chunsheng, an Associate Professor of the Central University of Finance and Economics.
Official figures show foreign investment in China stood at nearly 140 billion U.S. dollars last year, increasing by 7.9 percent year on year. It is likely to continue trending upward.
China is further opening its market to foreign direct investment. Despite inviting possible competition for China's local gas retail sector, experts say the move may actually improve the country's consumer petrol service. More importantly, the quality of petrol on offer is likely to improve as well. In the not-so-distant future, foreign-managed gas stations may soon be a reality.
Sources:global times
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