Industry Analysis & Industry Trends
Over the five years to 2016, revenue for the Oil Wholesale industry in China has been decreasing at an annualized rate of 7.7% to total $523.2 billion. In 2016, industry revenue is anticipated to fall 15.0%, due to declining oil prices. The proportion of imports satisfied by domestic demand has also been decreasing, suggesting a descending reliance on foreign oil. Industry imports are estimated to total $15.6 billion in 2016.
The Commerce department will continue to issue qualification certificates for crude oil and refined oil wholesalers in China. According to the first releases in 2014, 10 new establishments were permitted into the industry, most of which were branches of existing enterprises.... purchase to read more
Industry Report - Starting a New Business Chapter
Businesses concerned with oil energy are always monopolistic in nature in China with high barriers of various kinds.
Potential new entrants to the Oil Wholesale industry must apply to the Commerce department for special certificates, which only became open to private and foreign companies in 2007. Although the Chinese government claims it is dealing with the monopoly of oil wholesale, progress is slow. Five years since 2008, many foreign companies are still unable to get approval.
Oil resources in China are highly concentrated in several state-owned companies, most of which run wholesale businesses of their own. Companies planning to enter the industry are therefore restricted in terms of supply... purchase to read more