China’s Ministry of Commerce has moved to block U.S. sanctions imposed on five Chinese oil refineries accused of purchasing Iranian crude. The decision marks a sharp escalation in trade and geopolitical tensions between Beijing and Washington. Officials said the sanctions violate international law.
The ministry announced it had issued an injunction against the measures. It said the United States cannot legally enforce or recognize the penalties on the named companies. The move is seen as a direct rejection of Washington’s unilateral sanctions policy.
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The affected firms include Hengli Petrochemical (Dalian) Refinery and several so-called “teapot” refineries in eastern China. These smaller private refiners account for a significant share of China’s processing capacity. They have faced pressure due to weak domestic demand and tight margins.
The U.S. Treasury had previously accused these companies of buying billions of dollars worth of Iranian oil. Washington has intensified efforts to restrict Iran’s oil revenues amid wider regional tensions. Some of the firms had already been targeted in earlier rounds of sanctions.
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China said the sanctions disrupt normal trade and harm global economic stability. It also criticized the measures as contrary to international norms. The dispute highlights growing friction over energy trade and secondary sanctions linked to Iran.