The spokesperson of the Ministry of Commerce answered reporters' questions on blocking the United States from imposing sanctions on five Chinese companies related to Iranian oil

Q: On May 2, 2026, the Ministry of Commerce issued a ban to prevent the United States from imposing sanctions on five companies, including 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., for their inclusion in the Special Designated Nationals List (SDN List), freezing of assets, and prohibition of transactions under the pretext of participating in Iranian oil transactions. What are your considerations?

Answer: Since 2025, the United States has included Chinese companies such as 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. in the "Specially Designated Nationals List" (SDN List), implemented sanctions such as asset freezing and transaction prohibition, and improperly prohibited or restricted Chinese companies from conducting normal economic, trade, and related activities with third countries (regions) and their citizens, legal persons, or other organizations on the grounds of participating in Iranian oil transactions, in violation of international law and basic norms of international relations.

In order to safeguard national sovereignty, security, and development interests, and protect the legitimate rights and interests of Chinese citizens, legal persons, or other organizations, based on the "Measures to Block the Improper Extraterritorial Application of Foreign Laws and Measures" and the evaluation results of relevant work mechanisms, the Ministry of Commerce has issued a ban, stipulating that the US sanctions against the five Chinese enterprises mentioned above shall not be recognized, enforced, or complied with.

The Chinese government has always opposed unilateral sanctions that lack UN authorization and international legal basis. The ban issued this time is a specific action to implement the "Measures to Block the Improper Extraterritorial Application of Foreign Laws and Measures" in accordance with the law, which does not affect China's commitment and fulfillment of international obligations, nor does it affect China's legal protection of the legitimate rights and interests of foreign-invested enterprises. The Ministry of Commerce will continue to closely monitor the situation of inappropriate extraterritorial application of relevant national laws and measures. If there are situations stipulated in the Measures for Blocking the Inappropriate Extraterritorial Application of Foreign Laws and Measures, relevant work will be carried out in accordance with the law.