China orders firms not to comply with US sanctions on five refineries

China has ordered its citizens and companies not to comply with United States sanctions targeting five Chinese oil refineries, in the first known use of its 2021 anti-sanctions law.

The Ministry of Commerce issued what it called a "prohibition order" after the US Treasury Department last month announced sanctions on Hengli Petrochemical (Dalian) and four other refineries accused of handling Iranian oil.

Beijing said the sanctions should "not be recognised, enforced or complied with", and argued that they improperly restricted normal trade and business activities.

It said the order was intended to protect China's national sovereignty, security and development interests.

The move is significant because it shows Beijing is now using its anti-sanctions framework to directly challenge US extraterritorial measures.

It also adds to a wider dispute over the reach of American sanctions and how Chinese firms should respond.

The US Treasury Department said Hengli had generated hundreds of millions of dollars in revenue for Iran's military through crude oil purchases.

It described the refinery as one of Tehran's most valued customers.

China is Iran's largest trade partner and the biggest buyer of Iranian oil.

The supporting material says Chinese buyers received more than 80% of Iran's oil shipments in 2025.

Under China's law, citizens and organisations restricted from business by foreign legislation must report their circumstances to the Ministry of Commerce within 30 days.

Those who do not report can face warnings and fines.

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