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On May 2, 2026, China’s Ministry of Commerce issued a landmark prohibition order under its 2021 Rules on Counteracting Unjustified Extraterritorial Application of Foreign Legislation and Other Measures, commonly known as China’s Blocking Rules. The order bars the recognition, enforcement, or compliance inside China with U.S. sanctions imposed on five Chinese refineries accused of buying Iranian crude: Hengli Petrochemical (Dalian) Refinery, Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical, and Shandong Shengxing Chemical.
This was not just another diplomatic complaint from Beijing about U.S. “long-arm jurisdiction.” It was the first formal use of China’s Blocking Rules and marked a sharper legal response to Washington’s secondary sanctions. By invoking the measure, Beijing signaled that it is prepared to defend its energy trade with Iran not only through rhetoric, but through domestic law, court remedies, and regulatory pressure.
