The US sanctioned Chinese oil refineries. Now China is really pushing back
Beijing orders non-compliance with American sanctions on five key oil refineries.
China’s Ministry of Commerce has invoked its ‘Blocking Rules’ for the first time, ordering all domestic companies to disregard US sanctions imposed on five Chinese oil refineries. The sanctioned entities include Hengli Petrochemical (Dalian) Refinery and four smaller “teapot” refineries—Shandong Jincheng, Hebei Xinhai, Shouguang Luqing, and Shandong Shengxing—accused by Washington of trading Iranian petroleum. The US State Department described the sanctions as part of “decisive action to disrupt Iran’s illicit oil trade,” targeting entities that fund Iran’s “destabilising activities.”
Beijing’s response frames the US action as “improper extraterritorial application,” signaling a new stage in its resistance to long-arm jurisdiction. Analysts warn this could create a legal conflict for companies operating in both markets, potentially undermining the effectiveness of US sanctions enforcement. The move follows a series of US sanctions since last year on Iranian oil trade intermediaries, and China’s stance suggests it is now willing to use legal mechanisms to shield its energy sector from American pressure.
- China applied its ‘Blocking Rules’ for the first time against US sanctions on five oil refiners.
- Sanctioned refineries include Hengli Petrochemical and four ‘teapot’ refineries in Shandong.
- Move escalates pushback against US long-arm jurisdiction over Iranian fuel trade.
Why It Matters
China’s first use of Blocking Rules could alter global sanctions dynamics and disrupt oil trade enforcement.