Beijing (TDI): China has blocked United States sanctions against five of its oil refineries, in a sharp and daring escalation between the world’s two largest economies over energy trade and the enforcement of unilateral measures.
In a statement issued over the weekend, China’s Ministry of Commerce announced an official injunction prohibiting domestic entities from complying with US sanctions targeting the refiners, which Washington accuses of purchasing Iranian crude oil.
The order effectively nullifies the impact of the restrictions within China, underscoring Beijing’s growing willingness to push back against what it calls “long-arm jurisdiction” by the US.
The refineries named include Hengli Petrochemical as well as four independent “teapot” refiners; smaller, privately owned processors that play a crucial role in China’s oil supply chain.
These firms have been central to importing discounted Iranian crude, a trade Washington has sought to curb as part of its broader campaign to cut off revenue to Tehran.
US authorities imposed sanctions on Hengli in April, alleging it purchased billions of dollars’ worth of Iranian oil, and had previously targeted the other refiners.
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The measures restrict access to the US financial system and threaten penalties for third parties doing business with the sanctioned companies.
Beijing, however, has condemned the sanctions as illegal and lacking international legitimacy. The commerce ministry said the US actions violate “international law and the basic norms of international relations,” and insisted that Chinese firms must not recognize or enforce them.
This is one of the strongest uses yet of China’s legal tools designed to counter foreign sanctions. The move also reflects the strategic importance of “teapot” refineries, which account for a significant share of China’s refining capacity but operate on thin margins and rely heavily on cheaper crude supplies.
Their continued access to Iranian oil has also made them a key lifeline for Tehran, which depends on such sales to sustain its economy under sanctions pressure.
By formally rejecting US sanctions enforcement, China has built up on its official stance that rejects unilateral measures, and as part of which Beijing has openly condemned US tariffs and sanctions policies.
While the US maintains that its sanctions are a legitimate tool of foreign policy, China’s response signals an emerging effort to challenge that framework, and protect its companies from external pressure.
