Tightening of policies: China's rising control over its oil market

China’s 5-year long-term plan outlines the country’s aim to move towards high-quality growth instead of high-quantity growth, to reduce energy intensity by 13.5% and to increase the role of non-fossil fuels in primary energy demand. To achieve these targets, China is tightening its grip on its domestic oil market in the short term, resolving existing problems such as overcapacity, import reliance and carbon emissions. In this insight, we look to address how the implementation of short-term policies such as the new consumption tax on blending components, the reduction in crude import quotas, and lower product export quotas in H2 2021 will tackle problems in China's domestic oil market and what alternatives are there for the market players.