China Rejects US Sanctions on Oil Refineries, Implements Blocking Law

China's Firm Stance

The Chinese government has taken a significant step by refusing to comply with the sanctions imposed by the United States on five domestic oil refineries. Beijing has issued a formal directive instructing its companies to disregard these American restrictions, which were based on allegations of purchasing oil from Iran.

Beijing's Strong Response

According to the Chinese state newspaper 'China Daily', this decision is viewed as a 'defensive measure' against violations of international law. Beijing argues that the US is interfering in trade between sovereign nations by imposing unilateral sanctions without the approval of the United Nations. China contends that the US is using its domestic policies and the dominance of the dollar to exert pressure on other countries.

First Use of 'Blocking Law'

On Saturday, China's Ministry of Commerce announced the issuance of 'blocking measures'. This marks the first time Beijing has officially utilized its 'blocking law', a legal mechanism designed to negate the effects of foreign laws within China's borders. This action signals that China is prepared to respond not just diplomatically but also through legal means.

Which Companies Are Protected?

The Chinese Ministry of Commerce has issued orders to protect five major refineries from US sanctions. These include Hengli Petrochemical Refining Company, Shandong Shouguang Luhua Petrochemical, Shandong Jin Cheng Petrochemical Group, Hebei Xinhai Chemical Group, and Shandong Shengxing Chemical Company.

What Lies at the Heart of the Dispute?

The US Treasury Department has identified these independent Chinese refineries as key buyers supporting Iran's oil economy. The US claims that these companies purchased billions of dollars worth of Iranian oil during 2026, leading to their 'blacklisting' and the freezing of their assets. China has refuted these claims, asserting that these transactions are standard economic exchanges that the US is attempting to illegitimately obstruct.