US Media: China's 'Teapot Refineries' Absorb Iranian Oil, Like a Lifeline
The Wall Street Journal reported that China's 'teapot refineries' are absorbing almost all of Iran's oil exports, providing a financial lifeline to Iran. The US is intensifying sanctions on these Chinese refineries to pressure Iran.
📋 Article Processing Timeline
- 📰 Published: May 4, 2026 at 21:57
- 🔍 Collected: May 4, 2026 at 22:31 (34 min after Published)
- 🤖 AI Analyzed: May 4, 2026 at 22:37 (5 min after Collected)
Central News Agency
(Central News Agency, Taipei, May 4th) The Wall Street Journal reported that while the United States takes action to block Iranian ports and intercept oil tankers to exert pressure, it is also targeting Chinese private refineries known as "teapot refineries," which have absorbed almost all of Iran's exported oil. The report further describes these Chinese "teapot refineries" as providing a financial lifeline for Iran.
The report points out that the United States is stepping up efforts to cut off Iran's most critical financial lifeline, which is Iran's secret oil trade with China. To this end, Washington is increasing pressure on China's "teapot refineries," a system that can funnel tens of billions of dollars to Iran annually.
In late April, the U.S. Treasury Department sanctioned a subsidiary of China's Hengli Petrochemical for purchasing billions of dollars worth of Iranian oil. At the same time, 40 shipping companies and vessels involved in related transactions were also sanctioned. The U.S. Treasury Department subsequently warned some financial institutions that they might become targets if they assist these Chinese refineries in their dealings with Iran.
The report notes that for China, these more than 100 "teapot refineries" are important tools for circumventing U.S. sanctions. Energy analysts say that the Chinese government outsources its oil trade with Iran to small private refineries independent of China's state-owned oil giants. This allows the Chinese government to support Iran, ensure Iran's oil supply, and balance its relations with the United States and Middle Eastern countries.
According to public information, China does not import oil from Iran. Since 2023, Chinese customs authorities have never listed any oil imports from Iran. However, according to U.S. sanction notices and indictments, Iranian sellers, Chinese "teapot refineries," and intermediaries "painstakingly hide their activities." But it is estimated that 12% of China's oil imports in 2025 will come from Iran.
These actions include: tankers turning off transponders to avoid detection; dangerous "ship-to-ship" oil transfers at sea to conceal the origin of Iranian oil; and Iran establishing shell companies to facilitate payment transactions.
Since 2025, five Chinese "teapot refineries" have been targeted by U.S. sanctions. However, unlike China's state-owned oil giants, these "teapot refineries" have almost no overseas assets, so their losses are smaller even if they are cut off from the U.S. banking system. They can also settle trade with Iran in RMB instead of U.S. dollars, which not only avoids sanctions but also provides China with a workaround to maintain oil flow.
Daniel Roth, research director at United Against Nuclear Iran, a U.S.-based advocacy group, directly stated that it is these "teapot refineries" that allow the Tehran regime to continue operating.
Some energy analysts say that the scale of this trade is now so large that it would be difficult to cut it off completely. To succeed, the U.S. would have to take more drastic measures, such as intercepting more ships or destroying Iran's energy export infrastructure, but this would push up global oil prices and could anger China.
The report points out that these "teapot refineries" were targets of official Chinese efforts to crack down on them in their early years. However, to enhance the competitiveness of state-owned oil giants, China began allowing some "teapot refineries" to import and refine oil in 2015, but the import sources were not limited to Iranian oil.
Since 2018, U.S. President Donald Trump intensified sanctions against Iran, leading state-owned Chinese oil companies to shy away from importing Iranian oil. "Teapot refineries" filled this void, and China's oil imports from Iran increased rather than decreased.
Under these circumstances, the report cites statistics from professional institutions, stating that from 2017 to 2025, China's oil imports from Iran more than doubled, reaching approximately 1.4 million barrels per day. (Editors: Chiu Kuo-chiang/Wei Hsu) 1150504
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(Central News Agency, Taipei, May 4th) The Wall Street Journal reported that while the United States takes action to block Iranian ports and intercept oil tankers to exert pressure, it is also targeting Chinese private refineries known as "teapot refineries," which have absorbed almost all of Iran's exported oil. The report further describes these Chinese "teapot refineries" as providing a financial lifeline for Iran.
The report points out that the United States is stepping up efforts to cut off Iran's most critical financial lifeline, which is Iran's secret oil trade with China. To this end, Washington is increasing pressure on China's "teapot refineries," a system that can funnel tens of billions of dollars to Iran annually.
In late April, the U.S. Treasury Department sanctioned a subsidiary of China's Hengli Petrochemical for purchasing billions of dollars worth of Iranian oil. At the same time, 40 shipping companies and vessels involved in related transactions were also sanctioned. The U.S. Treasury Department subsequently warned some financial institutions that they might become targets if they assist these Chinese refineries in their dealings with Iran.
The report notes that for China, these more than 100 "teapot refineries" are important tools for circumventing U.S. sanctions. Energy analysts say that the Chinese government outsources its oil trade with Iran to small private refineries independent of China's state-owned oil giants. This allows the Chinese government to support Iran, ensure Iran's oil supply, and balance its relations with the United States and Middle Eastern countries.
According to public information, China does not import oil from Iran. Since 2023, Chinese customs authorities have never listed any oil imports from Iran. However, according to U.S. sanction notices and indictments, Iranian sellers, Chinese "teapot refineries," and intermediaries "painstakingly hide their activities." But it is estimated that 12% of China's oil imports in 2025 will come from Iran.
These actions include: tankers turning off transponders to avoid detection; dangerous "ship-to-ship" oil transfers at sea to conceal the origin of Iranian oil; and Iran establishing shell companies to facilitate payment transactions.
Since 2025, five Chinese "teapot refineries" have been targeted by U.S. sanctions. However, unlike China's state-owned oil giants, these "teapot refineries" have almost no overseas assets, so their losses are smaller even if they are cut off from the U.S. banking system. They can also settle trade with Iran in RMB instead of U.S. dollars, which not only avoids sanctions but also provides China with a workaround to maintain oil flow.
Daniel Roth, research director at United Against Nuclear Iran, a U.S.-based advocacy group, directly stated that it is these "teapot refineries" that allow the Tehran regime to continue operating.
Some energy analysts say that the scale of this trade is now so large that it would be difficult to cut it off completely. To succeed, the U.S. would have to take more drastic measures, such as intercepting more ships or destroying Iran's energy export infrastructure, but this would push up global oil prices and could anger China.
The report points out that these "teapot refineries" were targets of official Chinese efforts to crack down on them in their early years. However, to enhance the competitiveness of state-owned oil giants, China began allowing some "teapot refineries" to import and refine oil in 2015, but the import sources were not limited to Iranian oil.
Since 2018, U.S. President Donald Trump intensified sanctions against Iran, leading state-owned Chinese oil companies to shy away from importing Iranian oil. "Teapot refineries" filled this void, and China's oil imports from Iran increased rather than decreased.
Under these circumstances, the report cites statistics from professional institutions, stating that from 2017 to 2025, China's oil imports from Iran more than doubled, reaching approximately 1.4 million barrels per day. (Editors: Chiu Kuo-chiang/Wei Hsu) 1150504
Choose to stand with facts. Your every sponsorship is the power to protect press freedom.
Download the Central News Agency's "First-hand News" APP to stay updated with the latest news.
The text, images, and audio-visual content of this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.