The Chinese government has issued a formal order to block US sanctions targeting five domestic refineries, including the Hengli Petrochemical Refinery, accused by Washington of buying Iranian oil.
China Daily, a state-run English-language portal, defended Beijing’s decision, calling the move a “defensive and justified response” to what the government characterized as a clear violation of international law.
In an analysis for this portal, writer Li Yang argued that the sanctions imposed by Washington lack the necessary authorization from the United Nations. As a result, Li argued that such measures “violate international law and the basic norms of international relations”.
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He further argued that the US “does not only target specific companies” but actively attempts to assert “jurisdiction over third-party trade between sovereign actors”.
In relation to broader geopolitical strategies, Li noted that the US has historically used the dollar’s global dominance to extend the reach of its domestic policies. He noted that “secondary sanctions targeting entities that do business with blacklisted parties have become a staple of American statecraft.”
According to the report, China’s judicial and administrative response serves to create a firm boundary against outside interference. Li concluded that the court order sends a definitive message that “Chinese entities are not to comply with illegal US sanctions.”
In a sharp escalation of trade hostilities, China’s Ministry of Commerce (MOC) formalized the stance on Saturday by issuing a blocking measure barring domestic entities from complying with US restrictions, Xinhua reported.
It is the first time Beijing has officially invoked its “blocking statute,” a legal mechanism designed to neutralize the extraterritorial reach of foreign laws, signaling a shift from diplomatic protests to active legal countermeasures.
According to Xinhua, the specific companies listed under this protection include Hengli Petrochemical (Dalian) Refining Co., Ltd., Shandong Shouguang Luqing Petrochemical Co., Ltd., Shandong Jincheng Petrochemical Group Co., Ltd., Hebei Xinhai Chemical Group Co., Ltd. and Shandong Shengxing Chemical Co., Ltd.
According to China’s MOC, US measures include placing these firms on the list of Specially Designated Nationals (SDN), freezing their assets and restricting transactions with them.
An MOC spokesman criticized the US actions, saying such measures improperly restrict normal economic and trade exchanges between Chinese companies and third countries. The spokesman added that these actions target citizens and organizations in violation of international law and basic norms governing international relations, Xinhua reported.
China’s response follows a period of heightened scrutiny from Washington. Last month, the US Treasury Department’s Office of Foreign Assets Control (OFAC) warned global financial institutions of sanctions risks associated with transactions involving independent Chinese oil refineries, commonly known as “tea” refineries, particularly those based in Shandong province.
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According to OFAC’s warning, these refineries continued to play a significant role in the importation and processing of Iranian oil throughout 2026. The Treasury Department identified these refineries as major buyers supporting Iran’s oil economy, as they reportedly purchased billions of dollars worth of Iranian oil.
China’s Ministry of Commerce said the blocking order was issued in accordance with Beijing’s rules on combating the extraterritorial application of foreign laws. The measure aims to protect national sovereignty, security and development interests while protecting the legitimate rights of Chinese entities, according to Xinhua.
The spokesman reiterated his position, saying the Chinese government firmly opposes unilateral sanctions that are not authorized by the United Nations or have a basis in international law.
