China Pushes Back On US Curbs Against 'Teapot' Refineries: What Beijing's Anti-Sanction Law Says

Last Updated:May 07, 2026, 16:38 IST

In April, Washington had imposed sanctions of Hengli Petrochemical, accusing the firm of purchasing billions of dollars in Iranian oil

China’s Ministry of Commerce on Saturday announced that it had directed its citizens and countries not to comply with United States sanctions against five Chinese refineries over their alleged links with Iranian oil.

According to a report by news agency Xinhua, the five refineries facing US sanctions are: Hengli Petrochemical (Dalian) Refinery, and the so-called ‘teapot’ refineries Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical, and Shandong Shengxing Chemical.

In April — amid the war between the US-Israel and Iran — Washington had imposed sanctions of Hengli Petrochemical, accusing the firm of purchasing billions of dollars in Iranian oil.

The decision came at a time when the US was ramping up efforts to curb Iran’s oil revenue — Tehran is a major global energy player, with a heavy reliance on oil revenue for its budget and exports across Asia.

What China’s Order Says

According to the order issued by China’s Ministry of Commerce, cited by Al Jazeera, Beijing ruled that the US sanctions on Hengli Petrochemical (Dalian) refinery and four other refineries sanctioned by Washington “shall not be recognised, enforced or complied with".

China maintained that the sanctions “improperly" restricted normal trade and business activities, violating the international law.

The statement underscored Beijing’s long-standing stance against what it sees as the unjustified “long-arm jurisdiction" of US laws, Al Jazeera reported.

“The Chinese government has consistently opposed unilateral sanctions that lack authorisation from the United Nations and a basis in international law," said the ministry in a statement.

What Is China’s Anti-Sanctions Law?

The law requires Chinese citizens and companies, which are restricted from engaging in business activities by foreign legislation, to brief their circumstances to the Ministry of Commerce within 30 days, Al Jazeera reports.

Once the ministry concludes that a business or individual has been facing an “unjustified extra-territorial application", it can issue an injunction order.

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