In a direct challenge to Washington, China’s Commerce Ministry on May 2 slapped an injunction blocking US sanctions on five petrochemical firms linked to Iranian oil trades. The targeted companies include Hengli Petrochemical in Dalian, Shandong Shouguang Luching, Shandong Qingcheng Group, Hebei Xinhai Chemical, and Shandong Shengxing Chemical.
US measures had slated them for the SDN list, freezing assets and curtailing business. A ministry spokesperson fired back, noting that since 2025, America’s executive orders have unjustly penalized Chinese companies for routine dealings with third parties. ‘These sanctions disrupt legitimate trade and breach international legal standards,’ the spokesperson asserted.
The injunction stems from evaluations under China’s anti-extraterritorial rules, designed to protect national interests and corporate rights. No Chinese entity must acknowledge, implement, or follow these US restrictions.
Beijing’s long-held opposition to unilateral penalties without UN backing underscores its position. This move reinforces China’s commitment to sovereignty amid US-China frictions over energy and sanctions policy.
Experts predict ripple effects on global oil markets, as China’s stance could embolden other nations to resist secondary sanctions. It highlights the intensifying clash between superpowers, with trade as the battleground.
