CPCIC: Cooperation, not just a word in China

The importance of co-operation between international companies and Chinese companies as a driver of growth topped the agenda at the inaugural China Petroleum and Chemical International Conference (CPCIC) in Shanghai, co-organized by the China Petroleum and Chemical Industry Federation and Chemical Week for the first day of the conference.

Successful partnerships, between international companies offering technological know-how and Chinese companies offering strategic locations and knowledge of doing business in China can be a potent fuel for growth, speakers say. This is particularly relevant following the crisis that has prompted a round of consolidation and accelerated the shift of the market to Asia and China. Asia and particular China will be increasingly be the focus of growth and investment for MNCs to realize market growth potential, to balance the global supply chain and to manage various risks, says Yu Dahai, president of Evonik (China).

Partnerships for China could come in the form of alliances with locations with advantaged feedstock such as the Mideast. China, as a major consumer, and the Mideast as major supplier, have an interdependence that is expected to grow and evolve into specialties, says Saleh Al-Nazha, president and COO of Tasnee.

International cooperation is also important for the petroleum upstream, particularly in technological innovation, says Chengzao Jia, member of the Chinese Academy of Science, President of Chinese Petroleum Society. Although China has three basins abundant in oil and gas, the industry cannot depend on just resources but needs to grow and develop with innovation, Jia says. Chinese oil companies have increasingly expanded overseas in recent years.