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China orders domestic entities not to comply with U.S. sanctions on five Chinese petrochemical companies

Saturday, May 2, 2026International AffairsWell-covered4 frames
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The Facts

  • China's Commerce Ministry issued an order saying U.S. sanctions on five Chinese petrochemical companies must not be recognized, enforced or complied with in China.
  • The U.S. sanctions target five Chinese companies over alleged involvement in trade in Iranian oil.
  • The five companies identified in reports are Hengli Petrochemical (Dalian) Refinery, Shouguang Luqing Petrochemical, Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group and Shandong Shengxing Chemical.
  • Reported U.S. measures against the firms include placement on the Specially Designated Nationals list, asset freezes and transaction or dealing restrictions.
  • China said it issued the order under its rules against what it considers improper extraterritorial application of foreign laws and measures.
  • Beijing said the U.S. sanctions improperly restrict Chinese companies' normal trade with third countries and violate international law or basic norms of international relations.
  • The order affects Chinese companies and other domestic entities by directing them not to follow the U.S. sanctions against the five named firms.
  • China's Commerce Ministry said it will continue monitoring foreign laws and measures for possible improper extraterritorial application, indicating similar actions could follow in other cases.

Context

Which companies are covered by China's order?

Reports name five Chinese petrochemical companies: Hengli Petrochemical (Dalian) Refinery, Shouguang Luqing Petrochemical, Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group and Shandong Shengxing Chemical guancha.cn,Terra,Коммерсант.….

What U.S. sanctions is China trying to block domestically?

China said the U.S. measures include adding the firms to the Specially Designated Nationals list, freezing assets and banning or restricting transactions and dealings with them guancha.cn,中時新聞網,SAPO.

Why does China say it issued this order?

The Commerce Ministry said the U.S. sanctions amount to improper extraterritorial application of foreign measures, restrict Chinese firms' normal business with third countries, and were blocked to protect China's sovereignty, security, development interests and the lawful rights of Chinese entities guancha.cn,Al Jazeera Online,中時新聞網.

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Wire services (2)

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