China Orders Firms to Defy US Sanctions on Five Iranian Oil Refiners

Bloomberg reports that China's commerce ministry has ordered domestic companies not to comply with U.S. sanctions targeting five Chinese refiners linked to Iranian oil imports, invoking a blocking statute for the first time since its adoption in 2021. The order, issued Saturday, bans recognition, enforcement, and compliance with the U.S. measures, and allows the affected refiners — including Hengli Petrochemical (Dalian) Refinery Co. — to seek compensation in Chinese courts from any entity that does comply. Eurasia Group analysts warned that if Washington extends secondary sanctions to Chinese banks or major state-owned entities, Beijing would likely escalate with more forceful countermeasures.