China’s Ministry of Commerce announced a strict measure on Saturday to block United States sanctions against 5 Chinese companies. Officials and trade experts stated that the US actions violate international law and break the basic rules of global relations. Beijing designed this new blocking order to protect the legal rights of its domestic businesses and citizens.
The ministry issued a ban that forbids anyone from recognizing, enforcing, or complying with the US penalties. The United States targeted these 5 specific Chinese businesses, including Hengli Petrochemical (Dalian) Refining Co. and Shandong Shouguang Luqing Petrochemical Co. The US government accused these firms of buying and selling petroleum products with Iran.
Starting early in 2025, the US government used executive orders to place these 5 Chinese companies on the Specially Designated Nationals List. This aggressive move allowed US authorities to freeze the financial assets of these businesses. The designation also stops any global bank or company from doing business with them.
A spokesperson for the Chinese commerce ministry responded directly to these moves over the weekend. The official said China has always opposed unilateral sanctions lacking a clear mandate from the United Nations. The spokesperson added that this prohibition order is a practical step under China’s 2021 rules against the unfair extraterritorial application of foreign laws. The State Council approved those specific rules exactly 4 years ago to counter foreign economic pressure.
Despite the tough response, the ministry official promised that this ban would not stop China from meeting its existing international obligations. The government will also continue to protect the legal rights of foreign companies operating in China. Officials want to ensure that foreign investors still feel entirely safe investing in the Chinese market.
Hengli Petrochemical, the parent company that owns the targeted Dalian refining business, pushed back hard against the US penalties last week. The parent company issued a public statement calling the US claims completely groundless. The business leaders stated that the American accusations lack any factual evidence or legal backing.
In its public filing, Hengli Petrochemical stated that it strictly complies with all domestic and international laws. The company stated clearly that it never traded with Iran at any point since its creation. The firm also noted that its suppliers provide written guarantees stating that their crude oil does not originate from any regions under US sanctions.
Trade analysts point out that the US government constantly uses the dominance of the US dollar to stretch its own rules across the globe. The US relies heavily on secondary sanctions, which punish third-party companies that do business with blacklisted groups. Analysts say Washington uses this financial tool to change global supply chains and control international commercial deals.
Mei Xinyu works as a researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing. Mei said China keeps a neutral position regarding foreign conflicts but simply refuses to let other countries violate the rights of Chinese citizens. Mei explained that protecting these corporate interests remains a natural and necessary reaction to unfair foreign pressure.
At the same time, Mei noted that these protective measures do not change China’s main goals. The researcher emphasized that the country still plans to welcome foreign investments, support international cooperation, and provide a stable business environment.
Ding Rijia teaches industrial economy at the China University of Mining and Technology in Beijing. Ding believes this new ban highlights how China now uses its own legal tools to fight back against foreign sanctions. Ding stated that the policy shows local and multinational companies that China can build a safe and predictable legal environment for global trade.
Zhang Xin manages customs affairs at Oriental Energy New Material Co, a petrochemical producer based in Zhejiang province. Zhang said stable policies help maintain healthy and profitable trade relations between China and the US. Zhang noted that his company plans to keep importing materials from the US to optimize its supply chains. During the first 4 months of the year, Oriental Energy imported exactly 258,000 metric tons of liquefied propane from the United States. Customs data showed these imports cost the company about $150 million, proving that heavy trade still flows between the two nations despite the ongoing political disputes.
