(Yicai Global) Jan. 3 -- Shell China's wholly-owned unit Shell (Zhejiang) Petroleum Trading recently qualified to wholesale refined oil products in a sign of China's further opening to foreign capital.
The grant will enable Beijing-based Shell China, a wholly-owned subsidiary of The Hague, The Netherlands-headquartered Royal Dutch Shell, to buy and sell oil to corporate customers in China. Shell China has been active in the China market -- barring one several-year hiatus in the 1960s-70s, since 1894 -- per information on its website.
The company is now eager to develop its downstream business in the Chinese market, and the qualification to sell bulk oil will help it provide differentiated products to Chinese customers, Jacek Dziembaj, its global head of trading and supply, said in an interview with state Jiemian News.
China's Ministry of Commerce authorized 431 firms to wholesale refined oil from 2007 to August, per the statistics of Beijing-based commodity trading services provider JLC Network Technology. State and private companies, central enterprises and joint-venture and wholly foreign-owned ones make up about 70 percent, about 22 percent and 5 percent, respectively, of these.
The number of firms seeking the oil business qualification will gradually rise and company types will also diversify as China gradually loosens curbs against a general backdrop of relaxed foreign investment restrictions.
Editor: Ben Armour