economy
China’s sanctions pushback marks a new phase in the oil war with Washington
Beijing’s injunction against US refinery sanctions could mark a turning point in China’s response to Washington’s economic pressure on trade
TL;DR
- China's Ministry of Commerce issued an injunction blocking US sanctions on five independent oil refineries importing Iranian oil.
- This decision follows a year of escalating US sanctions, with the latest targeting Hengli Petrochemical, a large refinery in Dalian.
- China's legal groundwork for this action includes a 2021 law against foreign sanctions, activated in March 2025 with new regulations.
- The sanctions are linked to US actions concerning Iran's oil exports and the blockade of the Strait of Hormuz.
- China's move signals a departure from its traditional policy of avoiding direct confrontation and may lead to the development of alternative trading and payment systems.
- The US actions, ironically driven by former President Trump, could provoke a tougher and more decisive Chinese policy.