Beijing [China], May 3, 2026, BNN Web Staff: China has taken a firm legal step against recent US sanctions targeting its oil sector, issuing a formal injunction to shield domestic refiners accused by Washington of purchasing Iranian crude.
The move, described by Chinese authorities as “defensive and justified,” marks Beijing’s first official use of its “blocking statute” — a legal tool aimed at countering the extraterritorial impact of foreign laws.
According to state media reports, the action protects at least five Chinese refining companies, including Hengli Petrochemical Refinery, from US restrictions that place them on the Specially Designated Nationals (SDN) list. The sanctions involve asset freezes and curbs on international financial transactions.
China’s Ministry of Commerce (MOC) said the US measures unlawfully interfere in legitimate trade between Chinese firms and other countries. It emphasised that such sanctions lack United Nations backing and violate established norms of international law.
The ministry has now prohibited Chinese entities from complying with these restrictions, signalling a shift from diplomatic opposition to direct legal resistance.
Officials in Beijing argue that Washington’s approach reflects a broader pattern of using financial dominance and “secondary sanctions” to extend its jurisdiction globally, particularly in sectors linked to energy and trade.
The development follows increased scrutiny by the US Treasury Department, which recently flagged independent Chinese “teapot” refineries — especially in Shandong province — for their continued role in importing Iranian oil.
Chinese authorities maintain that the new legal measure is aimed at protecting national sovereignty, economic interests, and the rights of domestic companies amid escalating trade and geopolitical tensions.
