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Overview of Yingding v. Sinopec Case

Author::Zhan Hao, Song Ying浏览次数: February 25,2016

Authored by Dr. Zhan Hao (Partner  at AnJie Law Firm) and Song Ying (Partner at AnJie Law Firm) 

Introduction

Yunnan Yingding Bio-energy Co., Ltd. (“Yingding”) is an abio-energy manufacturer. In the last years, Yingding claimed that Sinopec and the Yunnan branch of Sinopec's (“Sinopec Yunnan Branch”) trading company had abused their market dominant position by refusing to incorporate the biodiesel they produced from waste cooking oil into Sinopec's distribution system, without justifiable reasons. The lawsuit was filed with Kunming Intermediate People’s Court (“Kunming Court ”) in China’s Yunnan province.

In the first instance ruling, Kunming Intermediate People’s Court (“Kunming Court”) ruled against Sinopec, holding that the Yunnan branch of Sinopec's trading company was obligated to purchase and distribute the biofuel made by Yingding and abused its dominance in the sales market of refined oil by refusing to purchase the biofuel made by Yingding without justifiable reasons. 

In the second instance ruling, Yunnan High People’s Court (“Yunnan Court”) reversed the first instance ruling and remanded the case on account of unclear facts and procedural errors. Currently, the case is pending. 

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