China Rejects US Sanctions on Five Firms, Issues Compliance Ban Order

(MENAFN) China’s Commerce Ministry has issued an order instructing relevant parties not to recognize or enforce US sanctions targeting five Chinese companies, according to official statements.

The ministry said the directive takes effect immediately and is intended to protect national sovereignty, security, and development interests, while also safeguarding the lawful rights and interests of Chinese companies and citizens.

The sanctions in question were imposed by the United States over allegations that the firms were involved in transactions related to Iranian petroleum. As a result, five Chinese companies, including Hengli Petrochemical (Dalian) Refining Co and Shandong Shouguang Luqing Petrochemical Co, were placed on a restricted list that freezes assets and prohibits business dealings with them.

According to the ministry, the US measures were reviewed under China’s national security framework and anti-foreign sanctions legislation, as well as its 2021 blocking regulations. The review concluded that the sanctions represent an inappropriate extraterritorial application of US jurisdiction.

Officials noted that this is the first time the Commerce Ministry has activated its blocking mechanism.

Earlier actions by US authorities in April included sanctions against Hengli Petrochemical (Dalian) Refining Co, citing alleged large-scale purchases of Iranian crude oil, while other refineries had previously been targeted as part of efforts to limit Iran’s oil export revenues.

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