What specific action did China take regarding US sanctions on Iranian oil-linked refiners, and why is it described as 'unprecedented'?

China ordered its companies to ignore US sanctions on private refiners linked to the Iranian oil trade—including Hengli Petrochemical (Dalian) Refinery Co., which was sanctioned last month—marking an unprecedented act of defiance because Beijing had previously allowed its largest companies to comply with such sanctions to avoid economic blowback and preserve access to the US financial system.

How does China's 2021 blocking measure relate to its recent directive against complying with US sanctions?

China is deploying a blocking measure introduced in 2021 that was specifically designed to protect its firms from foreign laws it deems unjustified, and it is now applying this mechanism to shield refiners like Hengli and other privately-owned processors from US asset freezes and transaction bans.

China’s Unprecedented Defiance of US Sanctions Triggers Showdown

May 3, 2026

China ordered domestic firms to ignore US sanctions on private oil refiners linked to Iran, including Hengli Petrochemical. This defiance challenges US leverage and impacts global energy supply chains amid rising geopolitical tensions.

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China’s Unprecedented Defiance of US Sanctions Triggers Showdown

China’s Unprecedented Defiance of US Sanctions Triggers Showdown

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