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On May 2, China’s Ministry of Commerce announced a ban blocking recognition, enforcement, or compliance with U.S. sanctions targeting five Chinese companies due to their alleged involvement in Iranian petroleum transactions.
The companies affected are Hengli Petrochemical (Dalian) Refining, Shandong Shouguang Luqing Petrochemical, Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, and Shandong Shengxing Chemical.
According to the Ministry’s statement, the U.S. measures include designating the companies on the Specially Designated Nationals List, freezing their assets, and prohibiting any transactions with them.
Since 2025, the U.S., through executive orders aimed at other nations, has imposed sanctions against these Chinese firms for their supposed participation in petroleum dealings with Iran. An official from the Ministry responded to the ban on May 2, stating that U.S. measures unfairly restrict normal economic and trade activities between Chinese companies and third countries, as well as their citizens, legal entities, or organizations. They argued these actions violate international law and basic principles of international relations.
To protect national sovereignty, security, development interests, and the lawful rights of Chinese citizens and organizations, the Ministry invoked the Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures to justify the ban.
The spokesperson emphasized that the Chinese government opposes unilateral sanctions that lack United Nations authorization and are not rooted in international law.
The decision to implement the ban is a lawful measure to uphold these rules. It does not impact China’s commitments under international obligations nor hinder the country’s efforts to safeguard the rights of foreign-invested enterprises operating within the law.
The Ministry assured it will continue closely monitoring the extraterritorial reach of foreign laws and will take further legal action if necessary to address any violations.
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