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Sign InReuters 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.