Beijing may face SOE resistance to smog rules

China’s two leading oil refiners, PetroChina (0857.HKG, 601857.SH) and China Petrochemical, also called Sinopec Group, have defended their green credentials as the government takes new anti-pollution steps in Beijing, The Wall Street Journal reported. Sinopec has invested billions of dollars in upgrading its facilities, the company said in response to requests for comment on the new regulations. PetroChina said it meets standards set by national regulations. Other steelmakers did not respond to requests for comment. The defensive responses suggests that the Chinese government is likely to face resistance from state-controlled firms that cannot transfer costs to consumers. Meanwhile, Beijing’s mayor, Wang Anshun, said on Tuesday that 180,000 old vehicles will be retired and polluting coal-fueled boilers will be replaced in some local properties, following record-setting hazardous air quality in the capital earlier this month, according to state-owned Xinhua News Agency.