China Invokes Anti-Sanctions Blocking Law for First Time Against U.S. Sanctions on Five Oil Refineries
Primary region China
Tags Diplomacy · Political economy
Regions China · US
China's Ministry of Commerce on May 2 issued injunctions blocking U.S. sanctions on five Chinese oil refineries — including Hengli Petrochemical (Dalian) — that the U.S. Treasury had designated for purchasing Iranian oil. Beijing invoked its 2021 anti-sanctions blocking law for the first time, ordering Chinese firms not to comply with the U.S. measures. The Treasury had called Hengli 'one of Tehran's most valued customers.' The move comes two weeks ahead of the Trump-Xi Beijing summit and represents China's first-ever deployment of its blocking rules.
Strategic interpretation
China's first-ever use of its anti-blocking law — two weeks before the Trump-Xi summit — signals Beijing is willing to escalate sanctions enforcement as diplomatic leverage. The move exposes U.S. secondary sanctions as a friction point that could complicate trade normalization talks while demonstrating China's willingness to shield entities engaged in strategically important energy trade with sanctioned states.