Sinopec's policy opens doors to private investment

Let's hope that this proves to be the case and that much of this new private sector involvement is represented by smaller companies generally.

Sinopecis allowing in private investors

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If bureaucracy and inefficiency are to be tackled and a more modern entrepreneurial, innovation-led approach is taken and modern management values are to be adopted, then it's small and medium-sized enterprises in the private sector that should prove most suitable.

SMEs are far more likely to hunger for business improvement and business expansion through tighter cost controls and innovative product and market development.

Let's also hope that private sector interest appears from a variety of industries and not just the petrochemical and related areas.

Experience and knowledge of the petrochemical industry is important, but an understanding of competitive markets and market orientation is crucial.

Simply finding private sector partners that share similar business models and values won't mean that customer care, cost controls and creativity replace the culture of complacency and kinship.

Most important, Sinopec should seek interest from suitable forward-looking foreign investors. Foreign investors, especially those with experience of the more lucrative, developed economies, can speed up any international expansion plans that are central to Sinopec's, long-term strategy - and that of many other Chinese companies.

The author is a visiting professor at the University of International Business and Economics in Beijing and a senior lecturer of marketing at Southampton Solent University's School of Business. The views do not necessarily reflect those of China Daily.