China for the First Time Orders Companies to Resist US Sanctions, New Confrontation Emerges in Great Power Game
China has taken an unprecedented step by ordering five domestic companies, sanctioned by the US for involvement in Iranian oil trade, not to comply with the US measures. This signals a new, tougher stance by Beijing in its great power rivalry with Washington.
📋 Article Processing Timeline
- 📰 Published: May 4, 2026 at 21:43
- 🔍 Collected: May 4, 2026 at 22:01 (18 min after Published)
- 🤖 AI Analyzed: May 4, 2026 at 22:14 (13 min after Collected)
Central News Agency
(Central News Agency, Beijing, 4th, comprehensive foreign reports) China recently took unprecedented resistance against US sanctions, ordering relevant companies not to comply. Analysts believe that while this is unlikely to derail the summit between US President Trump and Chinese President Xi Jinping this month, Washington's response will show whether the situation escalates.
China's Ministry of Commerce announced on the evening of the 2nd that in response to the US sanctioning five companies—Hengli Petrochemical (Dalian) Refinery Co., Shandong Shouguang Luqing Petrochemical Co., Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, and Shandong Shengxing Chemical Co.—for their involvement in Iranian oil trade, imposing asset freezes and transaction bans, China has implemented counter-sanction prohibitions in accordance with the "Measures for Blocking Improper Extraterritorial Application of Foreign Laws and Measures" promulgated in 2021. These prohibitions stipulate that US regulations shall not be recognized, enforced, or complied with.
Bloomberg News reported that while Beijing previously condemned unilateral sanctions and declared them illegal, it tacitly allowed large relevant companies to comply with sanctions to avoid impacting the Chinese economy and to keep channels to the US financial system open. However, the latest announcement shows that China is taking a significantly tougher stance this time.
The report pointed out that the US sanctions system has already been under pressure due to Washington's restrictions on Russia, Venezuela, and Iran, and is now being tested by Beijing's new actions. China is taking advantage of Trump's war on Iran, which has strained US relations with global allies, to defend an important part of its economic system while expanding its economic arsenal.
Chinese private refiners often appear to disregard US sanctions and are willing to buy large quantities of cheaper Iranian, Russian, and Venezuelan oil because they are generally less reliant on the US financial system than large Chinese state-owned refining companies. However, even the largest players like Hengli still have close ties with major Chinese state-owned banks.
Analysts from the international political risk consulting firm Eurasia Group issued a report stating that although the Trump-Xi summit is unlikely to be affected, Washington's subsequent response is worth watching. This is because the main Chinese banks collaborating with the relevant refineries have not yet been directly sanctioned by Washington. If the US includes these financial institutions or large Chinese state-owned entities in secondary sanctions, Beijing is likely to take stronger countermeasures.
China has long been the largest single buyer of Iranian oil exports, much of which is indirectly imported through private refineries to produce gasoline, diesel, and other petroleum products.
Previously, the US primarily targeted smaller Chinese companies and facilities when cutting off Iranian oil revenue, considering the economic and diplomatic impact. But now even Hengli is sanctioned, and this company represents China's most modernized private refining enterprise, with a massive oil processing and chemical park in Liaoning Province.
China's official magazine "China Report" website published an article on May 2nd by Cui Fan, an international economic and trade professor who previously served as a consultant to China's Ministry of Commerce. In the article, he warned that US sanctions related to Iran against Chinese refining, shipping, and port enterprises since last year have been "expanding in scope, becoming increasingly crude in methods, and showing a trend of intensification. If allowed to be abused, it will disrupt the stability of China's energy supply chain and infringe upon China's energy security and development interests." (Compiler: Chang Cheng-chien) 1150504
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(Central News Agency, Beijing, 4th, comprehensive foreign reports) China recently took unprecedented resistance against US sanctions, ordering relevant companies not to comply. Analysts believe that while this is unlikely to derail the summit between US President Trump and Chinese President Xi Jinping this month, Washington's response will show whether the situation escalates.
China's Ministry of Commerce announced on the evening of the 2nd that in response to the US sanctioning five companies—Hengli Petrochemical (Dalian) Refinery Co., Shandong Shouguang Luqing Petrochemical Co., Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, and Shandong Shengxing Chemical Co.—for their involvement in Iranian oil trade, imposing asset freezes and transaction bans, China has implemented counter-sanction prohibitions in accordance with the "Measures for Blocking Improper Extraterritorial Application of Foreign Laws and Measures" promulgated in 2021. These prohibitions stipulate that US regulations shall not be recognized, enforced, or complied with.
Bloomberg News reported that while Beijing previously condemned unilateral sanctions and declared them illegal, it tacitly allowed large relevant companies to comply with sanctions to avoid impacting the Chinese economy and to keep channels to the US financial system open. However, the latest announcement shows that China is taking a significantly tougher stance this time.
The report pointed out that the US sanctions system has already been under pressure due to Washington's restrictions on Russia, Venezuela, and Iran, and is now being tested by Beijing's new actions. China is taking advantage of Trump's war on Iran, which has strained US relations with global allies, to defend an important part of its economic system while expanding its economic arsenal.
Chinese private refiners often appear to disregard US sanctions and are willing to buy large quantities of cheaper Iranian, Russian, and Venezuelan oil because they are generally less reliant on the US financial system than large Chinese state-owned refining companies. However, even the largest players like Hengli still have close ties with major Chinese state-owned banks.
Analysts from the international political risk consulting firm Eurasia Group issued a report stating that although the Trump-Xi summit is unlikely to be affected, Washington's subsequent response is worth watching. This is because the main Chinese banks collaborating with the relevant refineries have not yet been directly sanctioned by Washington. If the US includes these financial institutions or large Chinese state-owned entities in secondary sanctions, Beijing is likely to take stronger countermeasures.
China has long been the largest single buyer of Iranian oil exports, much of which is indirectly imported through private refineries to produce gasoline, diesel, and other petroleum products.
Previously, the US primarily targeted smaller Chinese companies and facilities when cutting off Iranian oil revenue, considering the economic and diplomatic impact. But now even Hengli is sanctioned, and this company represents China's most modernized private refining enterprise, with a massive oil processing and chemical park in Liaoning Province.
China's official magazine "China Report" website published an article on May 2nd by Cui Fan, an international economic and trade professor who previously served as a consultant to China's Ministry of Commerce. In the article, he warned that US sanctions related to Iran against Chinese refining, shipping, and port enterprises since last year have been "expanding in scope, becoming increasingly crude in methods, and showing a trend of intensification. If allowed to be abused, it will disrupt the stability of China's energy supply chain and infringe upon China's energy security and development interests." (Compiler: Chang Cheng-chien) 1150504
Choose to stand with facts, every sponsorship you make is a force to protect press freedom.
Download the Central News Agency "First-hand News" APP to get the latest news instantly.
The text, images, and audio-visual content of this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.