There is always a call to reform China's petroleum and petrochemical industries. ANBOUND’s senior researcher He Jun points out that monopoly in petroleum industry is also monopoly of the entire industrial chain. Therefore, there is a need to open up the entire industrial chain in order to truly open up the petroleum industry. Only by opening up the industrial chain, private capital will have the confidence to compete with the "Three Oil Giants" namely Petro China, Sinopec and CNOOC. The quality of private enterprises can be effectively addressed via stringent quality supervision and penalty in the process of liberalizing market competition mechanism.