China's Ministry of Commerce issued an unprecedented order on Saturday prohibiting domestic companies and entities from recognizing, enforcing, or complying with recent US sanctions targeting five Chinese oil refineries.

The directive, described as China's first-ever blocking statute against US measures, took effect immediately and applies to sanctions under US Executive Orders 13902 and 13846. It safeguards what Beijing views as violations of international law and protects the legitimate interests of Chinese firms. The targeted companies include Hengli Petrochemical (Dalian) Refining Co., Ltd., Shandong Shouguang Luqing Petrochemical Co., Ltd., Shandong Jincheng Petrochemical Group Co., Ltd., Hebei Xinhai Chemical Group Co., Ltd., and Shandong Shengxing Chemical Co., Ltd.

These privately owned processors, often called "teapot refineries," face US asset freezes and transaction bans for their alleged role in purchasing Iranian crude oil since 2025. Hengli's Dalian facility, with a capacity of about 400,000 barrels per day, was among those hit in sanctions announced on April 24 by US Treasury Secretary Scott Bessent.

The US actions are part of a broader Trump administration campaign to disrupt Iran's oil exports, which generate revenue for its military and proxy forces. Bessent stated the sanctions target "the network of vessels, intermediaries and buyers Iran relies on to move its oil to global markets." He warned that nations holding Iranian funds or buying its oil risk secondary sanctions. China remains the largest buyer of Iranian oil, importing 80% to 90% of its seaborne exports, often via a shadow fleet that obscures origins.

This escalation occurs amid heightened US-Iran tensions, including a US naval blockade of the Strait of Hormuz and soaring global energy prices from disrupted supplies. The sanctions follow earlier measures against Chinese shipping firms and terminals involved in Iranian oil transport.

Beijing has repeatedly criticized the US measures as "unilateral" and lacking UN authorization, vowing to protect its companies' interests. The blocking order signals a shift from diplomatic protests to legal countermeasures, potentially complicating global supply chains and testing the reach of US extraterritorial sanctions.

No immediate US response to the Chinese order was available late Saturday. Analysts note that while smaller Chinese refiners often disregard US sanctions due to limited international exposure, this official directive underscores Beijing's firm stance in support of its energy security and ties with Iran.