Two Oil Giants Not Affected by Antimonopoly Law   


Chinese Antimonopoly Law has already come into force since August 1st, 2008.
   "The two oil giants CNPC and Sinopec Group will not be affected by the Law for the time being," said quite a few experts. "China's oil product retail sale market already has opened at some extent with a competition and is therefore likely subject to an examination of regulating departments. Due to a relatively high extent of openness, the domestic coal sector will be impacted considerably from the new Law. The domestic manufacturing enterprises will also be impacted greatly by the new Law."
   "Producers whose operation is authorized by the state are not in the scope of the Antimonopoly Law," said Wu Hong, President of School of Economic Laws of East China University of Politics and Laws. As the oil sector and especially its upstream sectors are controlled by the state, Antimonopoly Law's enforcement will not change the mode of China's oil sector.
   According to a renowned oil expert, Antimonopoly Law will have no great impact on the two oil giants because the Law is intended to oppose monopoly acts, not monopoly positions.
   Private holding oil firms can get some legal assistance from the Law. "As monopoly acts in the oil product retail sale sector can hardly be determined," some experts however point out, "private holding firms may be protected by the law, but they can hardly get hold of sufficient and convincing evidence."
   The standard for the mass reporting of operators issued to match the Law will likely set a threshold for the future acquisition and merging for enterprises. An unduly high market share of an enterprise by acquisition or merging may induce a question on monopoly.