Close
newsletters Newsletters
X Instagram Youtube

China rejects US sanctions on refineries over Iran oil links

In this pool photograph distributed by the Russian state agency Sputnik, China's President Xi Jinping arrives to meet his Russian counterpart on the sidelines of the Shanghai Cooperation Organisation (SCO) member states leaders' summit in Astana, Kazakhstan, July 3, 2024. (AFP Photo)
Photo
BigPhoto
In this pool photograph distributed by the Russian state agency Sputnik, China's President Xi Jinping arrives to meet his Russian counterpart on the sidelines of the Shanghai Cooperation Organisation (SCO) member states leaders' summit in Astana, Kazakhstan, July 3, 2024. (AFP Photo)
May 02, 2026 06:29 PM GMT+03:00

China said Saturday it would not recognize, implement or comply with U.S. sanctions against five Chinese firms targeted over purchases of Iranian oil.

China’s Commerce Ministry issued the injunction under a 2026 notice, saying the U.S. measures improperly restrict Chinese companies from conducting normal economic and trade activities with third countries.

Beijing says US measures violate international law

The Commerce Ministry said the U.S. sanctions “shall not be recognised, implemented, or complied with.”

The ministry said the measures “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 said.

Five Chinese firms covered by injunction

The injunction applies to five Chinese companies sanctioned by the United States over alleged involvement in Iranian oil transactions.

They are Hengli Petrochemical (Dalian) Refinery, Shandong Shouguang Luqing Petrochemical, Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group and Shandong Shengxing Chemical.

Three of the companies are based in Shandong province: Shandong Jincheng Petrochemical Group, Shandong Shouguang Luqing Petrochemical and Shandong Shengxing Chemical.

Sanctions include asset freezes, transaction bans

According to the Commerce Ministry notice dated May 2, 2026, the U.S. sanctions were imposed under Executive Orders 13902 and 13846.

The measures include inclusion on the Specially Designated Nationals list, asset freezes and transaction bans.

The ministry said China’s working mechanism under its blocking measures had reviewed the U.S. sanctions and determined that they amounted to unjustified extraterritorial application.

It said the injunction was issued to safeguard China’s national sovereignty, security and development interests, as well as the legitimate rights and interests of Chinese citizens, legal persons and other organizations.

The measure took effect from the date of publication.

US President Donald Trump (L) and China's President Xi Jinping shake hands as they arrive for talks at the Gimhae Air Base, located next to the Gimhae International Airport in Busan, South Korea, October 30, 2025. (AFP Photo)
US President Donald Trump (L) and China's President Xi Jinping shake hands as they arrive for talks at the Gimhae Air Base, located next to the Gimhae International Airport in Busan, South Korea, October 30, 2025. (AFP Photo)

China remains key buyer of Iranian oil

China is a major customer for Iranian oil, mainly through independent “teapot” refineries that depend on discounted crude from Iran.

The United States has increased sanctions on such refineries as it seeks to restrict revenue flowing to Tehran.

On Friday, Washington imposed sanctions on another Chinese firm, Qingdao Haiye Oil Terminal Co., Ltd., saying it had imported “tens of millions of barrels” of Iranian crude oil and generated billions of dollars in revenue for Tehran.

Qingdao Haiye Oil Terminal was not named in the Commerce Ministry injunction.

Sanctions come amid US-Iran standstill

The latest sanctions come as Washington and Tehran remain in a diplomatic standstill, with no permanent resolution in sight for the conflict that began with U.S.-Israeli strikes on Iran in late February.

U.S. President Donald Trump is due to visit China later this month for talks with Chinese leader Xi Jinping.

May 02, 2026 06:29 PM GMT+03:00
More From Türkiye Today