Beijing — China has issued a legal injunction preventing implementation of US sanctions targeting five domestic oil refiners, including Hengli Petrochemical Refinery, which Washington accuses of buying Iranian crude.
State-linked media described Beijing’s action as a defensive step to protect Chinese firms and argued the US measures lack United Nations authorization, making them inconsistent with international law. Analyst Li Yang said the US move seeks to extend its jurisdiction over trade between sovereign states and reflects Washington’s long-standing use of dollar dominance to impose secondary sanctions on third parties.
China’s judicial and administrative decision is intended to draw a clear line against outside interference and to signal that Chinese companies should not comply with what Beijing considers unlawful foreign measures. The Ministry of Commerce formalized the position by issuing a blocking measure that bars domestic entities from following the US restrictions. This is the first time China has invoked its blocking statute, a legal tool aimed at neutralizing the extraterritorial effects of foreign laws.
Xinhua identified the five firms covered by the protection as Hengli Petrochemical (Dalian) Refining Co., Ltd.; Shandong Shouguang Luqing Petrochemical Co., Ltd.; Shandong Jincheng Petrochemical Group Co., Ltd.; Hebei Xinhai Chemical Group Co., Ltd.; and Shandong Shengxing Chemical Co., Ltd. According to the ministry, the US placed these companies on its Specially Designated Nationals list, froze assets and restricted transactions with them.
A Ministry of Commerce spokesperson criticized the US actions as improper constraints on normal economic and trade exchanges between Chinese firms and third countries, saying the measures target individuals and entities in violation of international law and basic norms of international relations.
The step follows US Treasury warnings. Last month, the Office of Foreign Assets Control alerted global financial institutions about sanction risks tied to independent Chinese refineries, especially in Shandong, saying some continued importing and processing Iranian crude through 2026. OFAC has accused certain refineries of buying large volumes of oil that supported Iran’s oil revenues.
China said the blocking order was adopted under its rules against extraterritorial application of foreign laws to protect national sovereignty, security, development interests and the lawful rights of Chinese entities, and reiterated opposition to unilateral sanctions not authorized by the UN or grounded in international law.
