Management in China: domestic and international developments

On the basis of the case of Sinopec (Jia and Tomasic 2010, pp. 105-117), explain the main reforms undertaken by China´s National Oil Companies since the early 2000s and identify the remaining challenges for improving their corporate governance practices.
Shana Nussberger
Management in China: domestic and international developments
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Introduction
This paper aims at highlighting aspects concerning major reforms, which were carried out by National Oil Companies within China from early 2000s, based upon the Sinopec case. It also attempts to highlight remaining challenges towards the improvement of various practices concerning corporate governance within the Chinese companies which handle oil products. Due to difficulties which were experienced within the oil companies, there was need to come up with considerable changes through initiation of reforms which would endure that desired outcomes within company operations would appropriately be attained. In spite of the fact that suitable reforms were attained, it is clear that the oil companies within China face a variety of challenges which hinder smooth operations.
Explanation of the major reforms which were carried out by National Oil Companies within China from early 2000s, based upon the Sinopec case
Upon the basis of Sinopec case, it is clear that a variety of reforms were carried out by the various National Oil Companies within China from early 2000s with the aim of facilitating improved operations. The various reforms which were experienced may be brought to light as follows. For instance, the national companies dealing with oil products within China steered the attainment of enterprise and economic reforms. Within the China’s planned economy, various national ministries were initially involved in execution of public sector functions together with functions which were normally undertaken by private sector within nations which held market economies.
Secondly, there was company reorganization, a reform which was aimed at ensuring that better operations were attained. As a result of economic globalization together with conversion towards market system of the economy, the petroleum companies which were state-run went through comprehensive reorganization through Chinese government leadership. The oil companies were redistributed after which reorganization occurred into main groups which were vertically integrated, bringing about shifting the responsibilities they held from development and exploration to marketing and refining. The reorganization purpose may be brought to light as follows. For instance, it was aimed at facilitating separation of enterprise and government operations and also the breakdown of conventional downstream and upstream monopolies through multi-enterprise competition establishment. Secondly, the reorganization would prop up momentum in the petroleum industry of China through the introduction regarding created mechanisms and principl...