Business and development strategies in China: inferences based on the evolution of SINOPEC

Abstract

The purpose of this paper is to present Sinopec in the context of the transformationsof property organization in China, especially the constitution of thebusiness sector under long-term national development strategies. A hypothesisis that the growth of a large state-owned enterprise in China is on the one hand,the benefits of state support and on the other, the constraints imposed by suchbenefits on its business strategies of profitability and efficiency. In order to confirmthis hypothesis, we analyze the evolution of the oil and gas sector in China,from the point of view of the formation of its large companies. Next, Sinopecindicators, relate to the company’s financial development and strategies, areanalyzed for the period 1999 to 2016. We sought to highlight the evolution ofthe company’s indicators compared to the national strategies adopted. Resultsshow that Sinopec remains dependent on the national economic developmentstrategies.