Power Game and the Evolution of Oil Pricing Mechanism in China

LIANG Bo and WANG Hai-ying (Nanchang University,Nanchang,Jiangxi330031,China)

China Business and Market - - CHINA BUSINESS AND MARKET -

Abstract:Since the late 1990s,the pricing mechanism of Chinese oil industry underwent a great shift from traditional pricing mode by central government to the new mechanism of being in line with international oil market and partially marketised. As one kind of organizational and institutional phenomenon,this transformation could not be recognized as the outcome of the coercive institutional change controlled by central government. Actually,in this institutional change hidden behind a so called power game between the nation,national oil company and consumers on the issue of pricing mechanism change. And it is just this kind of power game which could be found as the deeply-seated organizational logic of the pricing mechanism change of Chinese oil industry. Concretely,the nation,national oil enterprises and oil consumers as the main actors have their own benefits or goals which are always different or contradict,and action capacity or critical resources. On the basis of understanding the special game environments,they could take different strategies and then finally achieved some minimal agreement and pushed the change of formal pricing mechanism of Chinese oil industry.

Key words:Chinese oil industry;pricing mechanism;power game

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