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Chinese commerce ministry blocks US sanctions against five refineries


Chinese commerce ministry blocks US sanctions against five refineries

An oil tanker carrying crude oil is guided to a berth at the oil terminal of Qingdao port, in China's eastern Shandong province, on March 7, 2026. (Credit: Illustrative photo AFP)

China’s Ministry of Commerce said Saturday it had issued an injunction to counter U.S. sanctions targeting five Chinese refineries accused of purchasing Iranian oil, according to the official Xinhua News Agency.

The ministry named Hengli Petrochemical (Dalian), as well as the so-called “teapot” refineries Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical and Shandong Shengxing Chemical.

In April, the U.S. Treasury sanctioned Hengli Petrochemical, accusing it of purchasing several billion dollars’ worth of Iranian oil as part of Washington’s efforts to curb Tehran’s oil revenues. The Trump administration had already sanctioned the other four refineries last year, among others.

The Chinese ministry said the U.S. measures violated “international law and the basic norms of international relations.” It added that the injunction prohibits recognition or enforcement of the sanctions against the five companies.

The sanctions have created difficulties for the refineries, including challenges in securing crude supply and the need to sell refined products under alternative names. The “teapot” refineries account for about a quarter of China’s refining capacity; they operate on thin, sometimes negative, margins and have recently been weakened by sluggish domestic demand.

China’s Ministry of Commerce said Saturday it had issued an injunction to counter U.S. sanctions targeting five Chinese refineries accused of purchasing Iranian oil, according to the official Xinhua News Agency.The ministry named Hengli Petrochemical (Dalian), as well as the so-called “teapot” refineries Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical and Shandong Shengxing Chemical.In April, the U.S. Treasury sanctioned Hengli Petrochemical, accusing it of purchasing several billion dollars’ worth of Iranian oil as part of Washington’s efforts to curb Tehran’s oil revenues. The Trump administration had already sanctioned the other four refineries last year, among others.The Chinese ministry said the U.S. measures violated “international law and the basic norms of...