China Rejects US Sanctions on Firms Accused of Buying Iranian Oil

China has said it will not enforce US sanctions imposed on five Chinese companies accused by Washington of purchasing Iranian oil, setting up a fresh point of tension between the world’s two largest economies.

In a statement issued on Saturday, China’s Ministry of Commerce said the sanctions, announced by the United States over the past year, would not be recognised or implemented by Beijing. The ministry described the measures as unlawful and said they interfered with legitimate trade between Chinese companies and third countries.

“The Chinese government has consistently opposed unilateral sanctions that lack United Nations authorisation and are not grounded in international law,” the ministry said.

The sanctions target five Chinese firms alleged by Washington to have imported Iranian crude. Three are based in Shandong province: Shandong Jincheng Petrochemical Group, Shandong Shouguang Luqing Petrochemical and Shandong Shengxing Chemical. The other two are Hengli Petrochemical’s refinery in Dalian and Hebei Xinhai Chemical Group.

China remains one of the largest buyers of Iranian oil, much of it purchased by smaller independent refiners often known as “teapot” refineries. These operators are attracted by discounted Iranian crude, which has continued to flow despite US efforts to restrict Tehran’s energy exports.

Washington has intensified sanctions on companies involved in Iranian oil trade as part of its campaign to reduce revenue to Tehran. US officials argue that oil sales help fund Iran’s government and regional activities.

On Friday, the United States announced additional sanctions against Qingdao Haiye Oil Terminal Co., accusing it of importing tens of millions of barrels of Iranian crude and generating billions of dollars in revenue for Iran. That company was not included in Beijing’s latest directive.

China’s response signals its determination to shield domestic companies from foreign penalties it considers extraterritorial. The commerce ministry said the US restrictions improperly limit normal commercial activities and violate the principles of international trade and diplomacy.

The dispute comes at a sensitive moment in international relations. Tensions between Washington and Tehran remain high following months of diplomatic deadlock and the fallout from US and Israeli strikes on Iran earlier this year. Efforts to reach a lasting resolution have so far failed.

It also unfolds ahead of a planned visit by US President Donald Trump to China later this month for talks with Chinese President Xi Jinping. Trade, regional security and energy are expected to feature prominently on the agenda.

Analysts say China’s refusal to comply with the sanctions highlights the growing divide between Washington and Beijing over the use of unilateral economic measures. It also underscores China’s strategic interest in maintaining access to Iranian energy supplies, particularly as global energy markets remain volatile.