TEMPO.CO, Jakarta - The Chinese government has prohibited its companies from complying with the sanctions imposed by the United States against five independent oil refineries, also known as "teapots," which are accused of buying oil from Iran. This move marks an escalation of tension between Beijing and Washington, particularly in the energy trade issue.
The Chinese Ministry of Commerce has stated that it has issued a prohibition order to reject the implementation of these sanctions. In a statement, the ministry assessed that the U.S. policy violates international law. The sanctions are considered inappropriate because they restrict trading activities between Chinese companies and third countries. "This violates international law and the basic norms governing international relations," a ministry representative stated as quoted by Al Jazeera.
The Chinese government also emphasized that the policy will not be acknowledged or complied with. "Sanctions shall not be acknowledged, enforced, or complied with," read the statement from the Ministry. The Ministry's warning is described as a step to safeguard national sovereignty, security, and development interests.
Beijing reasserted its stance against unilateral sanctions. "The Chinese government has consistently opposed unilateral sanctions that lack UN authorisation and basis in international law," the ministry stated.
The previous U.S. sanctions targeted five Chinese companies, namely Hengli Petrochemical (Dalian) Refinery and four independent refineries, namely Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical, and Shandong Shengxing Chemical. These sanctions were announced on April 24.
Washington accused these companies of buying large quantities of oil from Iran, which reportedly provides significant income to Tehran. These oil companies were said to have generated hundreds of millions of dollars in revenue for the Iranian military through the purchase of crude oil.
According to commodity data company Kpler, China purchased over 80 percent of the oil shipped from Iran in 2025. It was mentioned that Chinese oil refineries operate independently and generally have smaller facilities compared to state-owned oil giants such as Sinopec. These facilities are crucial for China's efforts to secure its oil supply. China takes advantage of crude oil sold at very low prices by sanctioned countries such as Iran, Russia, and Venezuela.
These oil refineries account for about a quarter of China's refining capacity. However, they operate on thin margins and face pressure from weakening domestic demand.
This tit-for-tat between China and the U.S. is happening amid Washington's efforts to increase pressure on Iran's oil exports. This situation also demonstrates the increasing rivalry between the two countries in the global energy and geopolitical sectors.
Read: What's Inside Iran's 14-Point Proposal to the United States
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