Beijing tells China companies to ignore US sanctions on refiners
Refineries, including Hengli Petrochemical’s Dalian unit, which was sanctioned last month, faced asset freezing and transaction bans within the scope of US measures.
China’s Ministry of Commerce said the sanctions unlawfully restrict normal trade with third countries and violate international norms. In a rare move, it issued an order prohibiting the recognition, enforcement or compliance with penalties targeting five firms.
The ministry said Beijing has consistently opposed unilateral sanctions that have no basis in United Nations support and international law.
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This standoff comes weeks before an anticipated meeting between Donald Trump and Xi Jinping. Analysts at Eurasia Group said this move was unlikely to derail the summit, but Washington’s reaction would indicate whether tensions were rising.
Analysts led by Dominic Chiu said the affected refineries largely work with Chinese banks that have not yet been directly sanctioned. Expanding US secondary sanctions to financial institutions or large state-owned companies could trigger stronger countermeasures from Beijing. Also Read: Iran balances oil cuts, storage shortages to resist US blockade
China remains the largest buyer of Iranian crude oil; much of this is routed indirectly through private refineries and processed into fuel products. Official customs data does not reflect these flows.
Previous U.S. efforts targeted smaller Chinese operators, but Hengli represents a newer class of large, advanced private refiners. The private sector accounts for approximately one-third of China’s refining capacity, underscoring the country’s focus on energy security.
