Story perspectives

China Blocks US Sanctions on Five Refineries

5/3/2026

Summary

China Blocks Sanctions

China’s Ministry of Commerce blocked United States (U.S.) sanctions on five Chinese refineries on May 2, 2026.
Block named Hengli Petrochemical (Dalian) and refineries in Shandong Jincheng, Hebei Xinhai, Shouguang Luqing, Shandong Shengxing.
The Treasury had sanctioned Hengli in April for billions of dollars of Iranian oil, which China said violate international law and not be complied with.
President Donald Trump will meet President Xi Jinping in May 2026 amid dispute.

Summary

US Treasury Sanctions

The U.S. Treasury sanctioned Qingdao Haiye Oil Terminal Co., Ltd and its president Li Xinchun for importing Iranian crude oil.
It also designated Hong Kong-based Onboard Ship Management Limited and UK-based Thriving Times International, firms linked to a fleet using ship-to-ship transfers and disabling tracking.
The Treasury froze assets of Opal, Radin and Arz Iran Exchanges and warned that maritime payments through the Strait of Hormuz could trigger secondary sanctions.

History

Historical Context

After the United States re-imposed sweeping sanctions on Iran in August 2018—freezing $400 million of oil revenues and barring about 30 percent of its fleet—the Trump administration also withdrew from the JCPOA. Decades of U.S. sanctions, from 1979 onward, have pushed Tehran toward China, whose Ministry of Commerce now shields Hengli Petrochemical while the U.S. Treasury targets Chinese oil-terminal firms.

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China Blocks Sanctions

China’s Ministry of Commerce blocked United States (U.S.) sanctions on five Chinese refineries on May 2, 2026.
Block named Hengli Petrochemical (Dalian) and refineries in Shandong Jincheng, Hebei Xinhai, Shouguang Luqing, Shandong Shengxing.
The Treasury had sanctioned Hengli in April for billions of dollars of Iranian oil, which China said violate international law and not be complied with.
President Donald Trump will meet President Xi Jinping in May 2026 amid dispute.

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