Beijing Blocks Compliance with U.S. Sanctions on Chinese Firms

(MENAFN) China’s Commerce Ministry has issued a directive prohibiting domestic entities from adhering to U.S. sanctions targeting five Chinese companies, invoking its internal review framework, as stated by reports.

According to official statements, the order—implemented immediately—is intended to defend national sovereignty, security, and economic interests, while also safeguarding the lawful rights of Chinese businesses and citizens.

The measures come in response to sanctions imposed by the United States over alleged involvement in Iranian oil-related transactions. Washington placed five companies, including Hengli Petrochemical (Dalian) Refining Co and Shandong Shouguang Luqing Petrochemical Co, on its Specially Designated Nationals list, resulting in asset freezes and restrictions on financial dealings.

Chinese authorities stated that the decision is grounded in national security legislation, anti-foreign sanctions laws, and the Blocking Rules introduced in 2021. A review conducted under this framework concluded that the U.S. actions represented an improper extension of jurisdiction beyond its borders.

This step marks the first instance in which China’s Commerce Ministry has activated its blocking mechanism.

Earlier developments, as indicated by reports, show that the U.S. Treasury sanctioned Hengli Petrochemical (Dalian) Refining Co in April over alleged large-scale purchases of Iranian crude. Additionally, previous measures under the administration of Donald Trump had already targeted the other four refineries as part of broader efforts to restrict Iran’s oil revenue streams.

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