China Counters U.S. Sanctions on Refineries With Blocking Order
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China’s Ministry of Commerce has issued an injunction barring domestic companies from recognizing or complying with U.S. measures targeting five Chinese refineries over alleged involvement in Iranian oil trade.
The order, released Saturday, marks Beijing’s first use of a newly enacted blocking statute aimed at shielding Chinese firms from the extraterritorial reach of foreign sanctions and limiting losses caused by over-compliance. Such measures are often described as “long-arm jurisdiction,” a practice where a nation extends its domestic laws to foreign entities, typically to safeguard national security and economic interests.
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- China's Ministry of Commerce issued injunction barring firms from complying with U.S. sanctions on five refineries: Hengli Petrochemical (Dalian), Shandong Shouguang Luqing, Shandong Jincheng, Hebei Xinhai, Shandong Shengxing.
- First use of April 13 blocking statute against U.S. "long-arm jurisdiction" on SDN-listed entities since 2025.
- Hengli denies Iran trade, uses yuan settlements; protects non-dollar transactions without U.S. nexus.
- Hengli Petrochemical (Dalian) Refinery Co. Ltd.
- Hengli Petrochemical (Dalian) Refinery Co. Ltd., a subsidiary of Shanghai-listed Hengli Petrochemical (600346.SH), was added to the US SDN list on April 24, 2025, for alleged Iranian oil trade. The firm denies any Iran dealings, uses yuan settlements, and has no US assets. China's MOFCOM injunction bars compliance with these US sanctions.
- Shandong Shouguang Luqing Petrochemical Co. Ltd.
- Shandong Shouguang Luqing Petrochemical Co. Ltd. is one of five Chinese refineries sanctioned by the US since 2025 for alleged Iranian oil trade involvement. US measures include SDN list placement, asset freezes, and transaction bans. China's Ministry of Commerce issued an injunction barring domestic firms from complying, countering "long-arm jurisdiction." (62 words)
- Shandong Jincheng Petrochemical Group Co. Ltd.
- Shandong Jincheng Petrochemical Group Co. Ltd. is one of five Chinese refineries sanctioned by the US since 2025 for alleged Iranian oil trade involvement. US measures include SDN list placement, asset freezes, and transaction bans. China's Ministry of Commerce issued an injunction barring domestic firms from complying, countering "long-arm jurisdiction." (58 words)
- Hebei Xinhai Chemical Group Co. Ltd.
- Hebei Xinhai Chemical Group Co. Ltd. is one of five Chinese refineries sanctioned by the U.S. since 2025 for alleged involvement in Iranian oil trade. U.S. measures include SDN listing, asset freezes, and transaction bans. China's Ministry of Commerce issued an injunction barring domestic firms from complying.
- Shandong Shengxing Chemical Co. Ltd.
- Shandong Shengxing Chemical Co. Ltd. is one of five Chinese refineries sanctioned by the U.S. since 2025 for alleged Iranian oil trade involvement. U.S. measures include SDN list placement, asset freezes, and transaction bans. China's Ministry of Commerce issued an injunction barring domestic firms from recognizing or complying with these "long-arm" sanctions. (58 words)
- Hengli Petrochemical Co. Ltd.
- Hengli Petrochemical Co. Ltd. (600346.SH) is the parent of Hengli Petrochemical (Dalian) Refinery Co. Ltd., sanctioned by the US on April 24, 2025, for alleged Iranian oil ties and added to the SDN list. The firm denies trading with Iran, has no US assets or operations, and uses yuan for crude purchases. China's MOFCOM barred compliance with these US measures.
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