China has ordered domestic companies to disregard US sanctions targeting Iranian oil imports, escalating tensions with Washington and directly challenging the Trump administration’s pressure campaign against Tehran.
China’s Ministry of Commerce issued a directive on Sunday invoking the 2021 “blocking statute” that prohibits Chinese firms from complying with foreign sanctions that Beijing considers illegitimate, according to Fox News. The order reportedly applies to several Chinese refiners accused by the United States of buying Iranian oil, including independent “teapot” refiners.
The Trump administration is increasing the pressure
The development comes as the Trump administration ramps up sanctions aimed at cutting off Iran’s main source of revenue.
US Treasury Secretary Scott Bessent accused China of effectively financing Iran’s military activities through large-scale oil purchases.
In an interview with Fox News, Bessent said: “China, we’ll see how they step up some diplomacy and get the Iranians to open the strait.
He added: “Iran is the biggest state sponsor of terrorism… China buys 90 percent of their energy, so they are funding the biggest state sponsor of terrorism.”
Bessent has repeatedly defended the administration’s “maximum pressure” campaign against Iran, arguing that the U.S. is “suffocating” Tehran with financial restrictions and naval coercive measures.
China remains a key buyer of Iranian oil
China remains the primary destination for Iranian oil exports, despite mounting US sanctions.
Much of Iran’s oil, which is subject to sanctions, is said to reach Chinese refineries through indirect shipping channels and complex maritime networks designed to avoid detection.
Beijing has defended its latest action by arguing that US sanctions illegally interfere with normal trade between sovereign states.
China’s Ministry of Commerce said the US measures violated international norms and confirmed that Chinese firms are prohibited from recognizing or complying with the sanctions.
Diplomatic tensions rise ahead of Trump-Xi meeting
The dispute is developing ahead of a highly anticipated meeting between President Donald Trump and Chinese President Xi Jinping later this month.
Meanwhile, Iranian Foreign Minister Abbas Araghchi arrived in Beijing this week for talks with Chinese Foreign Minister Wang Yi and highlighted China’s growing role as Iran’s main oil buyer and major diplomatic partner.
