A recent survey by the CGCC's Petroleum Distribution Committee indicates that the number of private oil wholesalers has plummeted from 3,340 at its peak in 1998 to the current number of 300. The number of private gas stations shrank from 56,300 in 1998 to 45,000 at present.

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China has allowed foreign companies to operate retail businesses since November 11, 2004, and oil wholesale businesses as of November 11, 2006, according to its WTO commitments. Since then, foreign companies have been allowed to build oil depots, docks and distribution networks to sell their products. As a result, overseas oil giants gradually gained a foothold in China's oil market by investing solely or establishing joint ventures with local oil companies. By the end of 2006, China had registered 2,607 foreign-funded gas stations and the number is still growing fast.

Total Group was among the first group of foreign oil companies to take action. It signed an agreement with CNPC in September 2005 to fund a joint venture with an overall investment worth nearly $100 million, of which CNPC holds a controlling stake of 51 percent. The prime task for the joint venture is to establish a distribution network for oil products in east China.