US Sanctions 5 Chinese Petrochemical Firms Over Iran Oil, Beijing Hits Back with ‘Blocking Statute’
Trade tensions between the United States and China have intensified after Washington imposed sanctions on five Chinese petrochemical companies for allegedly purchasing oil from Iran.
The US has placed these firms on its Specially Designated Nationals list (SDN), which allows authorities to freeze their assets and restrict financial transactions involving them.
China Refuses to Comply, Activates Legal Countermeasure
In a strong response, China’s Ministry of Commerce has instructed domestic companies not to comply with US sanctions. Beijing has invoked its “blocking statute”—a legal mechanism designed to neutralize the impact of foreign laws within its jurisdiction.
This marks the first time China has used this powerful legal tool in such a manner, signaling a shift from diplomatic protest to direct legal retaliation.
Companies Under Protection
According to Chinese state media, the five companies protected under this order include:
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Hengli Petrochemical (Dalian) Refining Co. Ltd.
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Shandong Shouguang Luqing Petrochemical Co. Ltd.
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Shandong Jincheng Petrochemical Group Co. Ltd.
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Hebei Xinhai Chemical Group Co. Ltd.
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Shandong Shengxing Chemical Co. Ltd.
China Calls US Move ‘Violation of International Norms’
A spokesperson for China’s Commerce Ministry criticized the US actions, stating that since 2025, Washington has repeatedly used executive orders to target Chinese firms over alleged involvement in Iran’s oil trade.
Beijing argued that such sanctions unfairly disrupt normal trade activities between Chinese companies and third countries, calling them a violation of international law and global trade norms.
Rising Global Trade Tensions
The development adds another layer of complexity to already strained US-China relations, especially amid ongoing geopolitical tensions involving Iran. Analysts believe the move could further escalate economic friction and impact global energy markets in the coming months
