China Fights Back Against US' Iran Oil Sanctions
China has instructed its companies to ignore U.S. sanctions on Iranian oil-linked refineries, marking a significant escalation in the ongoing trade and geopolitical tensions between the two nations. The move comes ahead of a planned meeting between President Donald Trump and Chinese leader Xi Jinping, potentially complicating diplomatic efforts. China invoked its 2021 sanctions-blocking mechanism to shield its firms from what it views as extraterritorial U.S. enforcement.
- ▪China's Ministry of Commerce ordered firms to defy U.S. sanctions on Iranian oil-linked refineries.
- ▪The U.S. has targeted 'teapot refineries' in China that process Iranian crude, warning of secondary sanctions.
- ▪China accounts for over 90 percent of Iran’s crude exports, making it a critical economic partner.
- ▪The U.S. Treasury has designated five Chinese refineries for processing Iranian oil since March 2025.
- ▪The standoff could disrupt diplomatic progress ahead of the planned Trump-Xi meeting in Beijing.
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By Micah McCartneyChina News ReporterShareNewsweek is a Trust Project memberSee more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.Beijing has ordered Chinese companies to defy U.S. sanctions over refineries linked to Iranian oil, in a challenge to U.S. efforts to extract further concessions from Iran in negotiations for a lasting ceasefire.The unprecedented move sets the stage for a potential showdown just days before President Donald Trump’s highly anticipated state visit to Beijing.China has regularly condemned unilateral sanctions by the U.S. and others, criticizing them as a form of "long-arm jurisdiction" used to enforce domestic laws extraterritorially.
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