China's petroleum and chemical enterprises are basically ready for going global, said Zhao Jungui, vice president of China Petroleum and Chemical Federation on Thursday.
Chinese petroleum and chemical industry now faces slower demand growth, increasing labor costs and greater resources and environmental restraints.
It's an inevitable choice for Chinese petroleum and chemical sector to go global and prompt international cooperation of production capacity in a bid to defuse overcapacity and improve competitiveness.
"China's chemical sector lacks innovative business mode, scientific management system and core technologies while adjustment of international division of labor and large-scale mergers and acquisitions offer us a opportunity to solve the problem," said Shen Xin, chief commerce officer with China National Chemical Corporation.
Still, petrochemical players should practice prudence in decision making of overseas mergers and acquisitions, warned Yu Dahai, partner with international private equity firm Advent International.