China has moved to block U.S. sanctions on five of its oil refineries, in a fresh escalation of tensions over trade and energy policy.
The country’s Ministry of Commerce said it had issued an injunction preventing the enforcement of measures imposed by Washington on companies accused of purchasing Iranian oil.
The announcement, reported by state news agency Xinhua, names Hengli Petrochemical along with four smaller “teapot” refiners: Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical and Shandong Shengxing Chemical.
The U.S. Treasury placed sanctions on Hengli Petrochemical in April, accusing it of buying billions of dollars’ worth of Iranian oil.
The other four firms had already been targeted in earlier measures introduced under President Donald Trump as part of efforts to restrict Tehran’s oil revenues.
China’s commerce ministry said the sanctions breach “international law and the basic norms of international relations”.
It added that the injunction means the United States “cannot recognise, implement, or comply with the sanctions imposed on the aforementioned five Chinese companies”.
The restrictions have already created operational challenges for the companies involved.
Industry sources say some refiners have struggled to secure crude supplies and have had to rebrand their products to continue trading.
The smaller independent plants, often referred to as “teapot” refineries, make up about a quarter of China’s refining capacity.
They typically operate on narrow margins and have been under pressure from weaker domestic demand in recent months.
The move by Beijing is likely to deepen friction between the two countries, as disputes over sanctions and trade continue to affect global energy markets.
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Passengers restrained a flydubai co-pilot who allegedly stabbed the pilot and tried to crash a flight from Dubai to Tel Aviv, Israeli Prime Minister Benjamin Netanyahu said on Wednesday.
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