China Orders Companies to Defy US Sanctions on Iranian Oil Refiners
Beijing tells China companies to ignore US sanctions on refiners
The Economic TimesImage: The Economic Times
China has instructed its domestic companies to disregard U.S. sanctions targeting five Iranian oil refiners, citing a 2021 law designed to protect firms from foreign measures. This move reflects China's ongoing opposition to unilateral sanctions and emphasizes its role as the largest buyer of Iranian crude oil.
- 01China's commerce ministry issued an order against U.S. sanctions on five Iranian refiners.
- 02The sanctions are viewed as violations of international trade norms by Beijing.
- 03China's blocking law aims to protect domestic firms from foreign sanctions.
- 04The affected refiners primarily engage with Chinese banks not currently sanctioned.
- 05China remains the largest importer of Iranian crude oil, processed through private refiners.
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China has ordered its domestic companies to ignore U.S. sanctions imposed on five Iranian oil refiners, including Hengli Petrochemical's Dalian unit, which were sanctioned last month. The Chinese commerce ministry invoked a 2021 blocking law to protect its firms from what it deems unjustified foreign measures. The ministry stated that these sanctions unlawfully restrict normal trade with third countries and violate international norms. This directive reflects China's consistent opposition to unilateral sanctions that lack United Nations backing. Analysts suggest that while this move may not impact the upcoming summit between U.S. President Donald Trump and Chinese President Xi Jinping, any escalation in U.S. sanctions could provoke stronger countermeasures from Beijing. China is the largest buyer of Iranian crude oil, with much of it processed through private refiners, which account for about one-third of China's refining capacity, emphasizing the nation's focus on energy security.
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This directive allows Chinese companies to continue engaging in oil trade with Iran, potentially stabilizing energy supplies and prices in China.
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