US Sanctions Chinese Refinery for Purchasing Iranian Oil; Chinese Embassy Protests

TAIPEI, April 25 (CNA) — The US Department of the Treasury announced sanctions against Hengli Petrochemical (Dalian), a Chinese refinery, for purchasing billions of dollars worth of Iranian oil. The Chinese Embassy in Washington expressed opposition, urging the US to 'stop abusing sanctions against Chinese companies.'

Washington is intensifying its crackdown on under-the-table petrochemical trades between Beijing and Tehran ahead of the 'Trump-Xi Summit' expected in mid-May. On April 24, the Treasury Department sanctioned Hengli Petrochemical (Dalian) along with approximately 40 entities, including shipping companies and vessels considered part of Iran's 'shadow fleet.'

According to Hong Kong 01, a spokesperson for the Chinese Embassy in Washington opposed the move, stating that normal trade should not be harmed. 'We call on the US to stop politicizing trade and technology issues and using them as weapons and tools, and to stop abusing various sanction measures to hit Chinese companies,' the spokesperson said.

The Treasury's announcement identified Hengli Petrochemical (Dalian) as one of the largest customers for Iranian crude oil and petroleum products. Since 2023, the company has purchased billions of dollars in crude oil from several sanctioned shadow vessels and from sales agencies under the supervision of the Iranian military.

As part of the sanctions, the US Treasury will freeze $340 million in cryptocurrency assets linked to Hengli Petrochemical's dealings with Iran. Additionally, 19 vessels responsible for transporting Iranian oil were sanctioned, six of which have Hong Kong backgrounds, including those flying Hong Kong flags or operated by Hong Kong-based companies.