China has announced that it will not enforce US sanctions imposed on five small and independent “teapot” oil refineries accused of importing Iranian crude oil. According to China’s Ministry of Commerce, the US measures are inconsistent with international law and the fundamental principles of international relations.
Beijing stated that the sanctions were imposed unilaterally without approval from the United Nations and therefore lack legitimacy. The ministry added that China has issued an anti-sanctions directive declaring that such US actions will not be recognized, enforced, or complied with within China or in international trade. It described the move as necessary to protect China’s sovereignty, security, and development interests.
The US Treasury Department announced on April 24 that five Chinese refineries, including Hengli Petrochemical, were sanctioned for allegedly purchasing Iranian oil and contributing to revenue flows benefiting Iran’s military sector. According to US officials, Hengli alone has generated hundreds of millions of dollars in revenue through crude oil purchases. Other refineries were also previously placed under sanctions.
China’s Commerce Ministry identified the five targeted facilities as Hengli Petrochemical (Dalian) Refinery, Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical, and Shandong Shengxing Chemical.
Analysts note that China’s so-called “teapot” refineries are relatively small and privately operated, but they play a significant role in the country’s energy supply chain. These facilities often process discounted crude oil from sanctioned countries such as Iran, Russia, and Venezuela.
Collectively, these independent refiners account for about one-quarter of China’s total refining capacity. Although they operate on thin profit margins and have recently faced pressure due to weak domestic demand, they remain an important component of China’s energy security strategy.
Meanwhile, US sanctions have created additional challenges for these refineries, including difficulties in international transactions and verifying the origin of refined products.
China rejects US sanctions, takes strong stand to protect five ‘tippot’ refineries
