Beijing has blocked the application of Washington’s sanctions against five Chinese companies due to alleged links with the Iranian oil trade through an order that prohibits individuals and entities from complying with, recognizing, or executing those measures.
The Ministry of Commerce explained on Saturday that the order, known as a “blocking ban,” aims to neutralize the effect of American sanctions within China by preventing companies or individuals from adhering to them or collaborating in their application.
According to the official statement, the measures adopted by Washington, which involve inclusion in sanctions lists, the freezing of assets, and the prohibition of transactions, interfere with the “normal commercial activities” between Chinese companies and third countries and violate “international law and the basic norms of international relations.”
The order is based on the Chinese legal framework against the extraterritorial application of foreign laws, developed in recent years and recently reinforced in April with new regulations that expand Beijing’s capacity to counter sanctions adopted by other countries.
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Chinese authorities reiterated their opposition to unilateral sanctions without the support of the United Nations and underlined that the measure does not affect the country’s fulfillment of international obligations nor the protection of the rights of foreign companies in China.
The decision comes after Washington sanctioned dozens of entities and individuals last week for alleged participation in financial networks linked to Iranian oil as part of the policy of pressure on Tehran.
Among the affected companies are several Chinese refineries and petrochemical groups identified by the United States for their supposed role in the marketing of Iranian oil, a flow that Washington considers fundamental for the financing of military activities and groups allied with the Islamic Republic.
Beijing’s measure coincides with the concern expressed by China regarding the impact of the conflict in Iran on global energy stability, with special attention to the Strait of Hormuz, a strategic route for the supply of crude oil.
