China Rejects US Sanctions on Firms Linked to Iran Oil Trade

International

China has moved to block the implementation of United States sanctions against five Chinese companies accused by Washington of involvement in Iran’s oil trade, marking another sharp moment in the growing tension between the world’s two largest economies, according to Mehr News Agency.

In a statement issued on Friday, China’s Ministry of Commerce said it officially opposes the enforcement of the American sanctions, arguing that such measures lack approval from the United Nations and have no basis in international law.

The sanctions target five Chinese petrochemical and refining companies that the United States claims participated in transactions involving Iranian oil. The penalties reportedly include asset freezes, restrictions on financial dealings, and placement on the US Specially Designated Nationals list.

Beijing responded by invoking its “Measures for Blocking the Improper Extraterritorial Application of Foreign Laws and Measures,” a legal framework designed to counter foreign sanctions that China considers unfair or unlawful.

According to the ministry, Chinese individuals and organizations are now prohibited from complying with the US restrictions against the listed companies. Officials described the move as a necessary step to protect China’s economic sovereignty and the lawful rights of domestic businesses.

The ministry also stressed that China has consistently opposed unilateral sanctions imposed without international authorization. At the same time, it said the decision would not affect China’s broader international obligations or the legal rights of foreign-invested enterprises operating in the country.

The dispute highlights the deepening geopolitical divide between Washington and Beijing, especially over issues tied to Iran, global trade, and energy security. While the United States continues efforts to limit Iran’s oil exports through sanctions, China has remained one of Tehran’s most important economic partners.

Analysts say the latest development could further strain relations between the two powers at a time when global markets are already facing uncertainty from ongoing political and economic conflicts.

For now, Beijing’s message appears clear: China is unwilling to allow foreign sanctions to dictate the actions of its companies at home.