ABSTRACT
In July 1983, the China Petrochemical Corporation was established by the State Council in order to consolidate petroleum processing and the distribution of petroleum products. Sinopec's leadership has been taken almost exclusively from the Ministry of Petroleum Industry and the Ministry of Chemical Industry. The Ministry of Petroleum Industry handles oil production, Sinopec handles processing, the petroleum product companies at the provincial level handle distribution and sales, and Sinochem is responsible for exports. The establishment of ministry-level corporations, such as Sinopec, is part of the overall reform of both the industrial sector and the planning system. The China National Offshore Oil Corporation, which is under the Ministry of Petroleum Industry, was established in February 1982 to manage foreign oil company investment in Chinese waters. The petroleum industry has been one of the main beneficiaries of China's new "open-door" policy.
