China Defies US Sanctions on Iran Oil Imports, Refuses Compliance

China’s Commerce Ministry announced on Saturday that it will not comply with U.S. sanctions against five firms targeted for purchasing Iranian oil, Beijing’s commerce ministry said. These companies are mainly involved in the import of discounted crude from Iran through independent “teapot” refineries.

The U.S., aiming to cut off revenue to Tehran, has intensified its sanctions on such refiners this year. The Commerce Ministry stated that the U.S. measures “shall not be recognised, implemented, or complied with,” arguing they “improperly prohibit or restrict Chinese enterprises from conducting normal economic, trade and related activities with third countries… and violate international law and the basic norms governing international relations.”

The ministry further noted its consistent opposition to unilateral sanctions lacking UN authorization and a basis in international law. The injunction applies to three companies in Shandong province – Shandong Jincheng Petrochemical Group, Shandong Shouguang Luqing Petrochemical and Shandong Shengxing Chemical – and two others based elsewhere in China, Hengli Petrochemical (Dalian) Refinery and Hebei Xinhai Chemical Group.

On Friday, Washington imposed sanctions on another Chinese firm for allegedly importing “tens of millions of barrels” of Iranian crude oil, generating billions of dollars for Tehran. However, Qingdao Haiye Oil Terminal Co., Ltd. was not included in the Commerce Ministry’s injunction. The latest sanctions come amid a diplomatic standstill between Washington and Tehran following US-Israeli strikes on Iran in late February. U.S. President Donald Trump is scheduled to visit China for talks with Chinese leader Xi Jinping later this month.