Beijing: China’s commerce ministry on Saturday invoked its first-ever “blocking order” against US sanctions imposed on five Chinese firms over the purchase of Iranian oil, marking a significant escalation in trade tensions between Washington and Beijing.
China is a key buyer of Iranian crude, relying heavily on discounted oil from the Islamic Republic, mainly through independent “teapot” refineries. Amid escalating tensions in West Asia, the US had ramped up economic pressure on Tehran by sanctioning such refineries.
According to the ministry’s injunction, which covers sanctions announced separately since last year, the US measures “shall not be recognised, implemented, or complied with.” The ministry said the sanctions “improperly prohibit or restrict Chinese enterprises from conducting normal economic, trade and related activities with third countries… and violate international law and the basic norms governing international relations.”
“The Chinese government has consistently opposed unilateral sanctions lacking UN authorisation and a basis in international law,” the ministry added.
The injunction covers three firms in Shandong province Shandong Jincheng Petrochemical Group, Shandong Shouguang Luqing Petrochemical, and Shandong Shengxing Chemical as well as two companies based elsewhere in China: Hengli Petrochemical (Dalian) Refinery and Hebei Xinhai Chemical Group.
On Friday, Washington separately sanctioned another Chinese firm, Qingdao Haiye Oil Terminal Co., Ltd., for importing “tens of millions of barrels” of Iranian crude oil, generating billions of dollars in revenue for Tehran. The firm was not mentioned in Saturday’s injunction.
The latest sanctions come as talks between Washington and Tehran continue to stall, with no signs of a permanent resolution to the conflict that began when the US and Israel launched joint strikes on Iran on February 28. US President Donald Trump is expected to visit China and hold talks with President Xi Jinping later this month.
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