China Defies US Sanctions on Refineries Tied to Iranian Oil Trade
Beijing-hina said on Saturday it would not comply with U.S. sanctions imposed on five Chinese firms accused of purchasing Iranian crude oil, rejecting Washington’s measures as unlawful and escalating tensions over Tehran’s energy exports amid a wider diplomatic standoff between the United States and Iran.
China, one of Iran’s largest oil buyers, relies heavily on discounted Iranian crude, much of it processed by smaller independent “teapot” refineries concentrated in eastern provinces such as Shandong.
The Chinese commerce ministry said U.S. sanctions targeting the firms, announced separately since last year, “shall not be recognized, implemented, or complied with,” describing the restrictions as unilateral measures lacking legal legitimacy.
The ministry said the sanctions “improperly prohibit or restrict Chinese enterprises from conducting normal economic, trade and related activities with third countries” and argued they violated international law and the basic norms governing international relations.“The Chinese government has consistently opposed unilateral sanctions lacking U.N. authorization and a basis in international law,” the ministry said in a statement.
The injunction applies to three companies based in Shandong province Shandong Jincheng Petrochemical Group, Shandong Shouguang Luqing Petrochemical and Shandong Shengxing Chemical along with Hengli Petrochemical (Dalian) Refinery and Hebei Xinhai Chemical Group.
Washington has intensified efforts to curb Iran’s oil revenues, which it says help finance Tehran’s regional activities and strategic programs, by expanding sanctions on Chinese refiners and shipping entities involved in the trade.
On Friday, the United States imposed sanctions on another Chinese company, Qingdao Haiye Oil Terminal Co. Ltd., alleging it had imported “tens of millions of barrels” of Iranian crude worth billions of dollars for Tehran.That company was not included in Beijing’s latest formal injunction.
The dispute comes as U.S.-Iran tensions remain high following the conflict triggered by U.S.-Israeli strikes on Iran in late February, with diplomatic efforts failing so far to produce a lasting resolution.Energy flows through the Gulf and the Strait of Hormuz remain under close international scrutiny as sanctions pressure and military tensions continue to shape global oil markets.
The sanctions dispute also adds another layer of complexity ahead of U.S. President Donald Trump’s expected visit to China later this month, where talks with Chinese President Xi Jinping are likely to include trade disputes, regional security and Iran-related tensions.
