China blocks US sanctions against five refineries

Saturday 02 May 2026 - 13:00

China’s Ministry of Commerce announced that it has taken legal measures to block sanctions imposed by the United States on five Chinese oil refineries, escalating tensions between the world’s two largest economies.

According to official statements reported by state media, the decision aims to counter U.S. restrictions targeting companies accused of purchasing Iranian oil. The move reflects Beijing’s firm opposition to what it considers unilateral sanctions that interfere with international trade.

The refineries named include Hengli Petrochemical as well as several independent operators often referred to as “teapot” refineries, which play a significant role in China’s regional fuel supply chain. These facilities have been under scrutiny by Washington for their alleged involvement in transactions linked to Iran’s oil exports.

U.S. authorities have intensified efforts in recent years to limit Tehran’s oil revenues, arguing that such measures are necessary to enforce international compliance. The sanctions form part of a broader strategy aimed at restricting Iran’s access to global energy markets.

In response, Chinese officials stated that these sanctions violate international law and the basic principles governing relations between nations. The Ministry of Commerce emphasized that its injunction is intended to protect the legitimate rights and interests of Chinese companies.

Analysts suggest that this development could further strain already fragile trade relations between China and the United States. It may also create uncertainty in global energy markets, particularly as China remains one of the world’s largest importers of crude oil.

While the long-term impact remains unclear, the dispute highlights ongoing geopolitical friction over energy security, economic sovereignty, and the use of sanctions as a foreign policy tool.