China holds steady on non-state oil quota

China held non-state import quotas for crude and fuel oils in 2013 at the same level as this year, Reuters reported, citing the Ministry of Commerce. The government will allow non-state firms to import 29.1 million tons of crude and 16.2 million tons of fuel oil. Increasing quotas for non-state entities has been part of China’s commitment to the WTO, but higher quotas have not translated into a greater degree of market liberalization. Non-state crude traders are mainly affiliates of Sinopec (SNP.NYSE, 600028.SH, 0386.HKG) and PetroChina (PTR.NYSE, 0857.HKG). The non-state firms will generally sell back crude to the two oil companies after importing it. Despite a 15% annual increase in non-state import quotas between 2001 and 2011, high barriers still prevent entry into the sector dominated by state-owned firms.