China will allow foreign companies to establish chemical fertilizer retail businesses in China from Dec. 11 of this year and chemical fertilizer wholesale businesses from Dec. 11 of next year, said an industrial insider.

"Chinese companies must reshuffle to cope with the coming competition," said Wang Wenshan, vice chairman of the China Nitrogenous Fertilizer Industry Association.

Wang said Chinese chemical fertilizer sales companies lag behind their foreign counterparts in the concept of marketing, means of marketing and work efficiency.

"They still haven't forged close alliance with fertilizer producers yet. They should do that," said Wang.

He said large foreign chemical fertilizer businesses, including the US Cargill, have begun to take steps to enter the sales market.

China imported 7.32 million tons of chemical fertilizer in 2004,down 40 percent from the previous year as the import quota was reduced.