China Enacts Anti-Sanctions Law to Counter Global Economic Pressure

China Issues Prohibition Order Against US Sanctions on Five Oil Refineries

Beijing has issued a prohibition order against the United States’ sanctions on five Chinese oil refineries, marking the first invocation of a 2021 law aimed at countering “extra-territorial” punitive measures. The Ministry of Commerce stated that the US Department of the Treasury’s sanctions targeting Hengli Petrochemical (Dalian) refinery and four other refineries are not recognized or enforced in China.

The order was issued after the US Treasury Department announced sanctions against one of China’s largest independently run “teapot” refineries, citing allegations that it generated hundreds of millions of dollars in revenue for Iran’s military. The Ministry of Commerce stated that the sanctions “improperly” restricted normal trade and business activities in violation of international law.

China has consistently opposed unilateral sanctions lacking UN authorization and a basis in international law. The country’s largest trade partner, Iran, receives over 80% of its oil shipments from China. Under the law, Chinese citizens and organizations subject to foreign legislation are required to report their circumstances to the Ministry of Commerce within 30 days.

The law, introduced in 2021, marks a formal system for prosecuting China’s longstanding grievances against the US sanctions regime. The prohibition order is noteworthy as it signals Beijing’s more assertive approach to countering sanctions. The move demonstrates China’s commitment to safeguarding its national sovereignty, security, and development interests, as well as the lawful rights and interests of Chinese citizens.

The Ministry of Commerce has issued an order barring parties from complying with US legislation, while businesses suffering losses due to compliance can initiate court proceedings for compensation. In some cases, they may receive necessary support from the government.

Source: Al Jazeera