The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.

We use cookies to improve your experience and serve personalized ads.

By clicking Accept, you consent to our use of advertising cookies. See our Privacy Policy for details.

GeopoliticsMediumUpdated×4•Originally published 4 May 2026•Updated 4 May 2026•

1 min read

China Orders Domestic Firms to Defy US Sanctions on Oil Refiners

Key Facts

1China's commerce ministry issued an order banning domestic firms from complying with US sanctions on five refiners linked to Iranian oil trade.

2This marks the first time China has deployed its 2021 'blocking measure' to protect firms from foreign laws it deems unjustified.

about 1 month ago

Version History

1 additional source confirmed this story

Version 4about 1 month ago

What changed: Official confirmation from Reuters regarding the formal invocation of China's anti-sanctions law.

Version 3about 1 month ago

What changed: Added critical diplomatic context regarding the timing of the order ahead of the upcoming summit between Trump and Xi Jinping.

Version 2about 1 month ago

What changed: Confirmation from Reuters that this is the first formal invocation of China's anti-sanctions law specifically targeting U.S. blacklisting.

Version 1about 1 month ago

What changed: Added details regarding the activation of a 'private right of action' under Announcement No. 21, enabling Chinese firms to sue for damages resulting from compliance with foreign sanctions.

Reuters has officially confirmed China's invocation of its anti-sanctions law to counter US blacklisting of five domestic refiners linked to Iranian oil trade. This formal activation of the 2021 'blocking measure' statute introduces a 'private right of action,' allowing Chinese firms to seek civil damages against entities complying with foreign sanctions. The move follows US sanctions on Hengli Petrochemical, which triggered a $1.4 billion wealth wipeout for its founders. Notably, this escalation comes just weeks before a planned high-stakes meeting between U.S. President Donald Trump and Chinese President Xi Jinping. Beijing appears to be leveraging this legal framework to shield its energy sector and assert economic sovereignty ahead of the summit. This development is expected to heighten trade tensions and create significant legal risks for global banks operating within the Chinese market.