China blocks U.S. sanctions on five Chinese firms over alleged Iran oil ties

 China's Ministry of Commerce on Saturday issued a blocking ban prohibiting any recognition, enforcement or compliance with U.S. sanctions imposed on five Chinese companies on the grounds of their alleged involvement in Iranian petroleum transactions.

The five companies are Hengli Petrochemical (Dalian) Refining Co., Ltd., Shandong Shouguang Luqing Petrochemical Co., Ltd., Shandong Jincheng Petrochemical Group Co., Ltd., Hebei Xinhai Chemical Group Co., Ltd., and Shandong Shengxing Chemical Co., Ltd.

According to the MOC announcement, the U.S. measures include placing the companies on the Specially Designated Nationals List, freezing their assets, and banning transactions with them.

Since 2025, the United States, under its executive orders targeting other countries, has imposed sanctions on these Chinese firms for their alleged involvement in petroleum transactions with Iran, an MOC spokesperson, in response to the ban, said on Saturday.

The U.S. measures, the spokesperson said, improperly prohibit or restrict normal economic and trade activities between Chinese companies and third countries as well as their citizens, legal persons or other organizations, in violation of international law and basic norms of international relations.

To safeguard national sovereignty, security and development interests, and to protect the legitimate rights and interests of Chinese citizens, legal persons and other organizations, the ministry issued the ban based on the Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures, the spokesperson noted.

The spokesperson reiterated that the Chinese government consistently opposes unilateral sanctions that lack authorization from the United Nations and the basis of international law.

A concrete action to implement the aforementioned Rules in accordance with the law, the issuance of the ban does not affect China's fulfillment of its international obligations, nor does it affect China's protection of the legitimate rights and interests of foreign-invested enterprises in accordance with the law, the spokesperson added.

The ministry will continue to closely monitor the improper extraterritorial application of foreign laws and measures, and will carry out further work in accordance with the law if such situations arise, the spokesperson said. ■