US Sanctions 5 Chinese Companies for Iran Oil Deals; China Issues Counter-Ban
The Chinese Ministry of Commerce has issued a counter-sanction ban in response to the US placing five Chinese petrochemical companies on a sanctions list for their involvement in Iranian oil transactions. The ban prohibits recognizing, implementing, or complying with US sanctions and criticizes the US actions as violating international law.
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- 📰 Published: May 2, 2026 at 21:41
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Taipei, May 2nd (CNA) – In response to the United States sanctioning five Chinese petrochemical companies by placing them on the "SDN List" for their alleged involvement in Iranian oil transactions, China's Ministry of Commerce announced a counter-ban this evening. The ban stipulates that as of today, US sanction regulations must not be recognized, implemented, or complied with. The Ministry also criticized the US for violating international law and basic norms of international relations.
According to an announcement on the Chinese Ministry of Commerce's official website this evening, the working mechanism for the "Measures for Blocking the Improper Extraterritorial Application of Foreign Laws and Measures" conducted a comprehensive evaluation regarding the sanctions imposed by the US on Hengli Petrochemical (Dalian) Refinery Co., Ltd. and other companies for participating in Iranian oil transactions. These sanctions include their inclusion on the "Specially Designated Nationals List" (SDN List), asset freezes, and trade prohibitions. The evaluation confirmed that the US sanctions against the aforementioned companies constituted improper extraterritorial application.
The announcement stated that to safeguard national sovereignty, security, and development interests, and to protect the legitimate rights and interests of Chinese citizens, legal persons, or other organizations, the Chinese Ministry of Commerce, in accordance with relevant provisions of the "Blocking Measures" and decisions of its working mechanism, issued the ban, effective from the date of promulgation.
This ban explicitly states that US sanctions imposed on Hengli Petrochemical (Dalian) Refinery Co., Ltd., Shandong Shouguang Luqing Petrochemical Co., Ltd., Shandong Jincheng Petrochemical Group Co., Ltd., Hebei Xinhai Chemical Group Co., Ltd., and Shandong Shengxing Chemical Co., Ltd. for their involvement in Iranian oil transactions, under Executive Order 13902, Executive Order 13846, and other regulations, including their listing on the "Specially Designated Nationals List" and the implementation of asset freezes and trade prohibitions, shall not be recognized, implemented, or complied with.
Through a press release titled "Spokesperson Answers Questions," a spokesperson for the Chinese Ministry of Commerce criticized the US for improperly prohibiting or restricting normal economic and trade activities between Chinese enterprises and third countries (regions) and their citizens, legal persons, or other organizations, stating that such actions violate international law and basic norms of international relations.
"The Chinese government consistently opposes unilateral sanctions that lack UN authorization and a basis in international law," the spokesperson said. "The issuance of this ban is a concrete action taken in accordance with the 'Measures for Blocking the Improper Extraterritorial Application of Foreign Laws and Measures.' It does not affect China's assumption and fulfillment of international obligations, nor does it affect China's lawful protection of the legitimate rights and interests of foreign-invested enterprises." (Editors: Yang Shen-ru / Tang Sheng-yang) 1150502
According to an announcement on the Chinese Ministry of Commerce's official website this evening, the working mechanism for the "Measures for Blocking the Improper Extraterritorial Application of Foreign Laws and Measures" conducted a comprehensive evaluation regarding the sanctions imposed by the US on Hengli Petrochemical (Dalian) Refinery Co., Ltd. and other companies for participating in Iranian oil transactions. These sanctions include their inclusion on the "Specially Designated Nationals List" (SDN List), asset freezes, and trade prohibitions. The evaluation confirmed that the US sanctions against the aforementioned companies constituted improper extraterritorial application.
The announcement stated that to safeguard national sovereignty, security, and development interests, and to protect the legitimate rights and interests of Chinese citizens, legal persons, or other organizations, the Chinese Ministry of Commerce, in accordance with relevant provisions of the "Blocking Measures" and decisions of its working mechanism, issued the ban, effective from the date of promulgation.
This ban explicitly states that US sanctions imposed on Hengli Petrochemical (Dalian) Refinery Co., Ltd., Shandong Shouguang Luqing Petrochemical Co., Ltd., Shandong Jincheng Petrochemical Group Co., Ltd., Hebei Xinhai Chemical Group Co., Ltd., and Shandong Shengxing Chemical Co., Ltd. for their involvement in Iranian oil transactions, under Executive Order 13902, Executive Order 13846, and other regulations, including their listing on the "Specially Designated Nationals List" and the implementation of asset freezes and trade prohibitions, shall not be recognized, implemented, or complied with.
Through a press release titled "Spokesperson Answers Questions," a spokesperson for the Chinese Ministry of Commerce criticized the US for improperly prohibiting or restricting normal economic and trade activities between Chinese enterprises and third countries (regions) and their citizens, legal persons, or other organizations, stating that such actions violate international law and basic norms of international relations.
"The Chinese government consistently opposes unilateral sanctions that lack UN authorization and a basis in international law," the spokesperson said. "The issuance of this ban is a concrete action taken in accordance with the 'Measures for Blocking the Improper Extraterritorial Application of Foreign Laws and Measures.' It does not affect China's assumption and fulfillment of international obligations, nor does it affect China's lawful protection of the legitimate rights and interests of foreign-invested enterprises." (Editors: Yang Shen-ru / Tang Sheng-yang) 1150502