China Issues Injunction to Block US Sanctions on Domestic Refiners

China Daily, a state-affiliated English-language outlet, defended Beijing's decision by describing the move as a "defensive and justified response" to what the government characterises as a clear violation of international law.

In an analysis for the outlet, writer Li Yang argued that the sanctions imposed by Washington lack the necessary authorisation from the United Nations. Consequently, Li asserted that such measures "violate international law and the basic norms of international relations."

He further contended that the US "is not merely targeting specific companies" but is actively attempting to assert "jurisdiction over third-party trade between sovereign actors."

Connecting this to broader geopolitical strategies, Li noted that the US has historically utilised the global dominance of the dollar to expand the reach of its domestic policies. He observed that "secondary sanctions penalising entities that transact with blacklisted parties have become a staple of US statecraft."

According to the report, China's judicial and administrative response serves to establish a firm boundary against external interference. Li concluded that the injunction sends a definitive message that "Chinese entities are not to comply with illegal US sanctions."

In a sharp escalation of trade hostilities, China's Ministry of Commerce (MOC) on Saturday formalised this stance by issuing a blocking measure prohibiting domestic entities from complying with the US restrictions, Xinhua reported.

This marks the first time Beijing has officially invoked its "blocking statute," a legal mechanism designed to neutralise the extraterritorial reach of foreign laws, signaling a shift from diplomatic protests to active legal countermeasures.

According to Xinhua, the specific companies named under this protection include Hengli Petrochemical (Dalian) Refining 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.

As per the Chinese MOC, the US measures involve placing these firms on the Specially Designated Nationals (SDN) list, freezing their assets, and restricting transactions with them.

An MOC spokesperson criticised the US actions, stating that such measures improperly restrict normal economic and trade exchanges between Chinese companies and third countries. The spokesperson added that these actions target citizens and organisations in violation of international law and basic norms governing international relations, Xinhua reported.

The Chinese response follows a period of heightened scrutiny from Washington. Last month, the US Department of the Treasury's Office of Foreign Assets Control (OFAC) cautioned global financial institutions about the sanctions risks associated with dealings involving independent Chinese oil refineries, commonly known as "teapot" refineries, particularly those based in Shandong province.

According to an alert by the OFAC, these refineries have continued to play a significant role in importing and processing Iranian crude oil throughout 2026. The Treasury Department has identified these refineries as major buyers supporting Iran's oil economy, having reportedly purchased billions of USD worth of Iranian petroleum.

The Chinese Commerce Ministry stated that the blocking order was issued in accordance with Beijing's rules on countering the extraterritorial application of foreign laws. The measure aims to safeguard national sovereignty, security, and development interests while protecting the legitimate rights of Chinese entities, as reported by Xinhua.

Reiterating its position, the spokesperson said the Chinese government firmly opposes unilateral sanctions that are not authorised by the United Nations or grounded in international law.

- ANI