China released a draft regulation requiring foreign-backed companies running more than 30 gas stations to be controlled by the Chinese side of the business. The regulation is open for comments until August 19.
If a foreign entity invests in gas stations, runs 30 or more retail outlets, and gets gas from various suppliers, Chinese shareholders should have a controlling stake in the business, according to a draft posted on the website of the Ministry of Commerce (MOFCOM) on Wednesday.
According to the draft, operators should apply for business licenses before selling crude oil and refined oil products. The MOFCOM will be responsible for guiding local authorities to develop plans for refined oil circulation, as well as drawing up departmental regulations and organizing the implementation of the plans.
The measure aims to strengthen the management of the distribution of crude oil and refined oil by standardizing business practices, maintaining order in domestic distribution, and defining the lawful rights and interests of operators and consumers, according to the MOFCOM.