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China Activates Blocking Rules in Response to U.S. Sanctions on Refineries
China issued a legal order declaring U.S. sanctions on five Chinese refineries null and void within its territory. The order prohibits Chinese companies from complying with the sanctions. This marks the first activation of China's Blocking Rules, established in 2021.
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China responded by issuing a formal legal order that declares these U.S. sanctions null and void inside China. The order also prohibits Chinese companies from complying with the sanctions.
This action represents the first time China has formally activated its Blocking Rules, a mechanism created in 2021. The rules were designed to address such scenarios involving foreign sanctions.
As a result, banks, shippers, and multinational companies operating in China now face conflicting legal obligations. They must choose between complying with U.S. requirements or Chinese regulations.
2025, China purchased 80% of Iran's exported oil, as reported by @MarioNawfal. The U.S. sanctions aim to enforce a financial blockade on Iran. This development creates a significant challenge to those efforts.
