Oil sands deal gives China crucial veto on exports
Sinopec's $4.6-billion deal to acquire a minority stake in the Syncrude oil-sands plant would give the Chinese state-controlled company a veto over the crucial decision of whether the company should upgrade more oil in Alberta or export raw bitumen for processing.
Prof. Jiang said Sinopec and other Chinese state-owned companies are making similar deals around the world, often in partnership with Western multinationals such as Imperial Oil's parent, Exxon Mobil Corp., or BP PLC, or Royal Dutch Shell PLC.
However, the Chinese companies are still controlled by Beijing and have a mandate to enhance the development of the Chinese economy, noted Queen's University business professor David Detomasi, who has studied global oil companies.
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