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flag China is merging CNAF into Sinopec to create a larger, more efficient energy company.

flag China’s State Council has approved the restructuring of Sinopec and China National Aviation Fuel Group (CNAF), with Sinopec set to absorb CNAF’s assets and operations, according to the State-owned Assets Supervision and Administration Commission. flag The move, announced January 8, 2026, is part of a broader government effort to consolidate state-owned enterprises, improve efficiency, and strengthen energy sector competitiveness. flag While specific details remain undisclosed, the reorganization is expected to create a vertically integrated energy giant, enhancing jet fuel supply chain control amid rising aviation demand. flag The deal reflects ongoing consolidation in China’s heavy industries and strategic efforts to optimize state assets and energy security.

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