The China US sanctions oil refineries dispute escalated after China’s Ministry of Commerce announced it has issued an injunction blocking US sanctions targeting five Chinese refineries accused of purchasing Iranian oil.
According to the ministry, the decision directly challenges US restrictions imposed on companies including Hengli Petrochemical (Dalian) Refinery and several smaller independent “teapot” refineries operating across China.
The US had previously accused these firms of purchasing billions of dollars worth of Iranian crude oil, as part of Washington’s broader effort to reduce Iran’s energy revenue amid ongoing geopolitical tensions.
The China US sanctions oil refineries case reflects growing friction between Beijing and Washington over energy trade and secondary sanctions, particularly those linked to Iran-related transactions.
Chinese authorities stated that the US measures violate international law and basic principles of international relations. They further declared that the sanctions cannot be recognized or enforced within China.
The injunction specifically instructs that US sanctions will not be implemented or complied with regarding the five named Chinese companies. Beijing has consistently opposed what it calls “unilateral sanctions.”
These refineries, often referred to as “teapot refineries,” represent a significant portion of China’s refining capacity. However, they have faced operational pressure due to weak demand and difficulties in securing crude supplies.
The China US sanctions oil refineries dispute is expected to further strain already tense economic relations between the two global powers, especially in the energy sector.
