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A working group of the European Union Chamber of Commerce in China (EUCCC) is expected to meet Chinese counterparts next month to propose suggestions to China's energy policies.

The energy working group has hammered out seven major suggestions and plans to discuss them with the National Development Reform Commission -- the major decision maker for China's energy policy, said Henry K. H. Wang.

Wang, chairman of EUCCC Petrochemical Oil & Gas Committee, was speaking yesterday during an industrial seminar.

The policies are the consensus agreement of its 26 members including leading global energy conglomerates such as BP, Shell, BASF, Bayer, Electricite de France and Total.

The suggestions include making favourable long-term policies to support clean energy and natural gas, clarifying plans for tax unification reform, appointing independent oil and gas regulators, and improving the handling of anti-dumping cases.

The group also proposes the government allow foreign investors to have majority holdings in joint ventures in the petrochemical, oil and gas sector.

Wang said the suggestions are supported by the EU Commission. And the reform will help attract foreign direct investment to the Chinese energy sector.

Xavier Chen, vice-president of Gas, Power and Regulatory Affairs of BP China, said the country needs to be more open to international resources in drafting its energy policies.

"China's energy policy has great influence in the international community because of its increasing energy consumption and carbon dioxide emission.

"China needs a mechanism to improve international co-operation in studying the energy policy,'' said Chen.

Chen worked in the Paris-based International Energy Agency for seven years before moving to BP three months ago.

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