China Blocks US Sanctions on Five Firms Linked to Iran Oil Trade

Severity: Medium (Score: 57.0)

Sources: Chinadaily.Cn, En.Mehrnews, English.News.Cn

Summary

On May 2, 2026, China's Ministry of Commerce announced a legal ban against compliance with US sanctions targeting five Chinese companies allegedly involved in oil transactions with Iran. The companies affected include Hengli Petrochemical, Shandong Shouguang Luqing Petrochemical, Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, and Shandong Shengxing Chemical. This action is part of China's broader strategy to oppose unilateral sanctions not authorized by the UN. The ban is intended to protect the legitimate rights of foreign-invested enterprises in China and will be enforced under the 'Measures for Blocking the Improper Extraterritorial Application of Foreign Laws and Measures.' The Ministry stated it would monitor any improper extraterritorial applications of foreign laws. The injunction takes effect immediately and prohibits the enforcement of sanctions such as asset freezes and transaction prohibitions imposed by the US. Key Points: • China's Ministry of Commerce has banned compliance with US sanctions on five Chinese firms. • The affected companies are linked to alleged oil trade with Iran. • This action reflects China's stance against unilateral sanctions lacking UN authorization.

Key Entities

• China (country)
• Iran (country)
• United States (country)