On April 24, the U.S. Department of the Treasury imposed sanctions on Hengli Petrochemical (Dalian) Refining & Chemical Co., Ltd., a China-based independent refinery, for allegedly purchasing Iranian crude oil linked to Iran’s military. U.S. authorities stated that since at least 2023, the company had received shipments overseen by Sepehr Energy—an entity associated with Iran’s armed forces—generating hundreds of millions of dollars in revenue for Iran army. The move is part of broader U.S. efforts to pressure Iran’s oil sector, including earlier sanctions on several Chinese “teapot” refineries. These smaller independent refiners – so that they appear as “non-government” actions – are major buyers of Iranian oil, much of which is transported covertly and often labeled as originating from other countries such as Malaysia.
In response, on May 2, China’s Ministry of Commerce issued a blocking order rejecting U.S. sanctions against five Chinese firms: Hengli Petrochemical, Shandong Shouguang Luqing Petrochemical Co., Ltd., Shandong Jincheng Petrochemical Group Co., Ltd., Hebei Xinhai Chemical Group Co., Ltd., and Shandong Shengxing Chemical Co., Ltd. The order, citing Chinese laws on national security, foreign relations, and countering foreign sanctions, declared the U.S. measures to be an improper extraterritorial application of law.
It further stipulates that no Chinese entity or individual may recognize, comply with, or enforce U.S. sanctions imposed under Executive Orders 13902 and 13846, including measures such as designation on the Specially Designated Nationals (SDN) list, asset freezes, and transaction bans.
The blocking order took effect immediately upon issuance on May 2, 2026.
Source: Radio France International, May 2, 2026
https://www.rfi.fr/cn/政治/20260502-美制裁五涉伊朗石油交易中企-中国商务部发布阻断禁令-不得承认执行遵守