BEIJING May 2, 2026 – China’s Ministry of Commerce has issued a domestic injunction prohibiting the enforcement of recent U.S. sanctions targeting five Chinese oil refineries accused of purchasing Iranian crude oil, in a direct challenge to Washington’s extraterritorial sanctions policy.
The injunction, reported by state news agency Xinhua, covers Hengli Petrochemical (Dalian) Refinery Co. Ltd. — one of China’s largest independent “teapot” refineries with a daily processing capacity of around 400,000 barrels — as well as four other teapot refineries: Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical, and Shandong Shengxing Chemical.
The U.S. Treasury Department imposed sanctions on these entities and dozens of related shipping firms and tankers in late April 2026, accusing them of facilitating billions of dollars in Iranian oil exports in violation of U.S. restrictions aimed at curbing Tehran’s revenue streams.
China’s Commerce Ministry described the U.S. measures as “unilateral sanctions” that violate international law and disrupt normal economic and trade exchanges. The injunction explicitly orders Chinese companies and individuals not to recognize, implement, or comply with the U.S. penalties, effectively shielding the refineries from any domestic enforcement of American sanctions.
China remains the largest buyer of Iranian oil, accounting for approximately 90% of Tehran’s exports. These imports have continued despite repeated U.S. pressure campaigns, often routed through complex shadow fleet arrangements.
Analysts view the move as a significant assertion of economic sovereignty and energy security by Beijing. “Sanctions only work when the world plays along,” one commentator noted on X following the announcement. The injunction underscores the limits of U.S. long-arm jurisdiction when major powers prioritize domestic legal protections and supply chain stability.
The development comes amid heightened U.S.-Iran tensions and broader global shifts in energy trade, highlighting growing resistance to dollar-denominated sanctions enforcement by BRICS nations and other emerging economies.
No immediate comment was available from the U.S. State or Treasury Departments as of press time. The story is developing.
Life News Agency will continue monitoring this story for updates.
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