Its stranglehold on petroleum imports was broken for the first time in the beginning of the reform and opening up period. Of the 100 million tons of crude oil it imported, Sinopec made up 80 million, with Sinochem taking up most of the rest. But its status as the sole importer of potassium fertilizer was not shaken.

At that time, China's central government was closely following the "three agricultural issues", especially the harsh burdens faced by farmers. Representing businesses that relied on potassium fertilizer imports, China's Phosphate Fertilizer Industry Association suggested to the National Development and Reform Commission that "Large chemical fertilizer producers should have their own power to import potassium fertilizer."

Through intense rounds of negotiations, the National Development and Reform Commission decided that a pilot batch of six new firms should be given the power to import, a list that was eventually expanded to ten.

Wu Xiyan, chairman of the Phosphate Fertilizer Industry Association, says that in that first year prices began to increase, and the market became a sellers market. Joining together was still useless due to their collective small size..

But some firms thought that Sinofert's contracts had been secured by exerting pressure on the foreign exporters who, wary of stirring its wrath, did not sign contracts with the other six firms

In 2005, the six entrusted Zhong A Chemical Fertilizer to serve as their representative in potassium fertilizer price negotiations. This firm had previously been lauded by Deng Xiaoping and was among batch that had earned the right to be an importer of potassium fertilizer. But when it went to directly negotiate prices with foreign suppliers, Sinofert blocked it.

By the end of October, the Association sent a report to the Ministry of Commerce suggesting that it break the monopoly and establish a new system for potassium fertilizer imports. By the end of the year, the report had drawn the attention of vice-premier Wu Yi of the State Council, who wrote a response-- a sternly worded memo calling for the potassium fertilizer imports system to be re-evaluated without delay, and saying that the two firms cannot sacrifice national interest for their own profits, and that privately run businesses enter the trade.