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BEIJING -- PetroChina, one of China's two major onshore oil and gas producers, has abandoned a plan to jointly produce polycarbonate (PC) in northern China with the US-based GE Plastic, company sources announced on Wednesday.

A source with PetroChina said that the decision was based on market research but did not elaborate.

Last June, GE Plastic, headquartered in Pittsfield, Massachusetts, the United States, announced a partnership plan with PetroChina, which would provide raw materials for the joint-venture PC facility.

It is reported that the possibility of GE Plastic being sold by its parent company, GE, could have affected the joint-venture plan.

Industry observers say there will be an oversupply of PC in China over the next few years. This prediction was another likely factor behind the abandonment, observers said.

A petrochemical product, polycarbonate is mainly used for producing instruments, precision machines, auto parts, sports gear and CDs/DVDs.