China's Ministry of Commerce directed companies across the country on Saturday not to comply with US sanctions imposed on five Chinese oil refiners the previous day [1]. The US State Department announced the sanctions on Friday against Hengli Petrochemical (Dalian) Refinery, Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical, and Shandong Shengxing Chemical [1].
The US said the sanctions were a "decisive action to disrupt Iran’s illicit oil trade" and to hold Iran and its sanctions-evading partners accountable [1]. In response, China stated after an in-depth assessment that "the United States on the aforementioned companies constitutes improper extraterritorial application," rejecting the US rationale [1].
The five sanctioned refiners represent key Chinese players targeted in what Washington describes as a campaign to cut off Tehran’s illicit oil revenue, a move China views as an overreach of US jurisdiction [1]. The sanctions inhibit the ability of these firms to engage with the global financial system and trade partners compliant with US regulations.
China’s official order instructs all domestic companies to disregard the US sanctions and continue commercial dealings with the named refineries [1]. This move intensifies tensions between the two powers amid broader trade and geopolitical disputes.
The next concrete step is determined by ongoing enforcement and diplomatic responses. The US may pursue further actions to press China and others regarding Iran sanctions compliance, while China maintains its policy against US extraterritorial sanctions.
The situation remains closely watched as both sides navigate this standoff involving trade restrictions and sanctions enforcement.
