China has strongly criticized new United States sanctions targeting Chinese companies, describing them as “illicit” and vowing to defend the interests of its businesses. The response follows Washington’s latest measures linked to Iran’s oil trade.
Speaking in Beijing, foreign ministry spokesperson Lin Jian said China firmly opposes unilateral sanctions that lack a basis in international law. Moreover, he urged the US to abandon what he called the misuse of sanctions and “long-arm jurisdiction,” adding that Beijing would take necessary steps to safeguard the legitimate rights of its companies.
The remarks came after the United States Department of the Treasury imposed fresh Iran-related sanctions. These measures include restrictions on Hengli Petrochemical (Dalian) Refinery Co, alongside nearly 40 other entities. At the same time, US authorities issued a general license allowing businesses to wind down existing dealings with the refinery.
Meanwhile, Tommy Pigott stated that the sanctions form part of broader efforts to curb what Washington describes as Iran’s illicit oil trade. The move also targets independent Chinese refineries, often known as “teapot” plants, primarily located in Shandong.
Following the announcement, shares of Hengli Petrochemical dropped sharply, falling by up to 10 percent. However, the company denied any involvement in Iranian oil transactions.
Previously, the Donald Trump administration had sanctioned several other independent refiners, including Hebei Xinhai Chemical Group and Shandong-based firms. These measures restrict access to US assets and prohibit American entities from conducting business with the targeted companies.
Despite this pressure, analysts note that such independent refineries remain relatively insulated due to their limited exposure to the US financial system. Furthermore, data indicate that China accounted for over 80 percent of Iran’s oil exports last year, underscoring the ongoing energy ties between the two nations.
