China orders firms to ignore US sanctions on Iranian oil

China has, for the first time, invoked a law targeting companies that comply with foreign sanctions it rejects, escalating its pushback against US measures targeting purchases of Iranian crude.

Beijing’s Ministry of Commerce on Saturday ordered companies not to comply with US sanctions against five refiners, including Hengli Petrochemical, citing legislation that allows China to retaliate against entities enforcing what it deems unlawful restrictions.

Independent refiners in China are widely seen as the main buyers of Iran’s oil exports.

The decision comes less than two weeks before President Trump is due to visit Beijing, underscoring China’s willingness to deploy economic pressure tools despite a broader trade truce with Washington.

Washington’s has blacklisted of Chinese firms accused of trading Iranian and Russian oil—an issue that has drawn repeated criticism from Beijing.