China Counters U.S. Sanctions on Refineries With Blocking Order
Listen to the full version
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.
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Save an extra $50. Introductory offer for new readers. Subscribe now.
- RELATED
- DIGEST HUB
Digest Hub
Back
- China’s Ministry of Commerce issued injunction barring domestic firms from complying with U.S. sanctions on five refineries over alleged Iranian oil trade.
- Targets: Hengli Petrochemical (Dalian), Shandong Shouguang Luqing, Jincheng, Hebei Xinhai, Shandong Shengxing; first use of April 13 blocking statute.
- U.S. SDN listings since 2025; Hengli denies Iran trade, uses yuan settlements.
- Hengli Petrochemical (Dalian) Refinery Co. Ltd.
- Hengli Petrochemical (Dalian) Refinery Co. Ltd., a core subsidiary of Hengli Petrochemical Co. Ltd. (600346.SH), was added to the U.S. SDN list on April 24, 2025, for alleged Iranian oil trade. It denies trading with Iran, has no U.S. assets, and settles crude in yuan. China's Ministry of Commerce barred compliance with U.S. sanctions.
- Hengli Petrochemical Co. Ltd.
- Hengli Petrochemical Co. Ltd. (600346.SH) is the parent of Hengli Petrochemical (Dalian) Refinery, sanctioned by the US on April 24, 2025, and added to the SDN list over alleged Iranian oil trade. The firm denies any Iran dealings, has no US assets or operations, and uses yuan for crude purchases. China's MOFCOM injunction bars compliance with these US measures.
- Shandong Shouguang Luqing Petrochemical Co. Ltd.
- Shandong Shouguang Luqing Petrochemical 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 listing, asset freezes, and transaction bans. China's Ministry of Commerce issued an injunction barring domestic firms from complying.
- Shandong Jincheng Petrochemical Group Co. Ltd.
- Shandong Jincheng Petrochemical Group 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 compliance.
- 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. (52 words)
- 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 complying.
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新