China's Ministry of Commerce has issued an injunction blocking US sanctions imposed on five Chinese oil refiners accused of buying Iranian crude. The sanctions, announced by the US Treasury Department late last month, bar the refiners from the US financial system and seek to penalize any entity doing business with them.
In a statement on Saturday, the ministry said the sanctions "improperly" restrict business between Chinese enterprises and third countries "in violation of international law and the basic norms governing international relations." It issued a "prohibition order" stipulating that the sanctions "shall not be recognized, enforced, or complied with," calling it a move to "safeguard national sovereignty, security, and development interests."
The ministry reiterated China's consistent opposition to unilateral sanctions lacking UN authorization and basis in international law. The order blocks US measures against Hengli Petrochemical (Dalian) Refinery and four other so-called "teapot" refineries: Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical, and Shandong Shengxing Chemical.
Announcing the sanctions on April 24, the US Treasury Department labeled Hengli "one of Tehran's most valued customers," claiming it generated hundreds of millions of dollars in revenue for the Iranian military through crude oil purchases. The Trump administration imposed sanctions on the other four refineries last year.
China sources over half its oil from the Middle East, much of it from Iran. According to commodities data firm Kpler, China bought more than 80% of the oil Iran shipped in 2025. China's "teapot" refineries operate independently and are generally smaller than state-owned giants like Sinopec. These facilities, crucial to China's oil supply security, capitalize on heavily discounted crude from sanctioned countries like Iran, Russia, and Venezuela. Teapots account for a quarter of Chinese refinery capacity and have recently faced squeezed margins due to weak domestic demand, with US sanctions adding further hurdles.
Source: www.aljazeera.com