China has criticised US sanctions targeting Chinese companies, calling them “illicit” and vowing to safeguard the interests of its firms.
“China always opposes unilateral sanctions that have no basis in international law,” foreign ministry spokesperson Lin Jian told reporters in Beijing.
“China urges the US to abandon the wrong practice of abusive sanctions and long-arm jurisdiction,” Lin said.
He added that China “will firmly safeguard the lawful rights and interests of Chinese companies.
The United States imposed fresh Iran-related sanctions on Friday and issued a general license authorising the wind-down of deals involving the Chinese company Hengli Petrochemical (Dalian) Refinery Co, according to a notice on the US Treasury website.
State Department spokesman Tommy Pigott said the measures are part of broader efforts to curb what Washington describes as Iran’s illicit oil trade.
His remarks came after the Treasury imposed sanctions on a major independent Chinese refinery, often referred to as “teapot” refineries, which operate largely in the eastern province of Shandong, and nearly 40 additional entities.
Hengli Petrochemical dives
Meanwhile, shares of Hengli Petrochemical fell as much as 10 percent on Monday after the US sanctions.
The US Treasury Department said on Friday that the refiner is one of Iran's largest customers for crude oil and petroleum products. The company denied it had any dealings with Iran in a statement on Sunday.
The Trump administration has already imposed sanctions on several other independent refiners, including Hebei Xinhai Chemical Group, Shandong Shouguang Luqing Petrochemical, and Shandong Shengxing Chemical.
These sanctions, blocking US assets of those designated and preventing Americans from doing business with them, have deterred some larger independent refiners from buying Iranian oil.
China bought more than 80 percent of Iran's shipped oil last year, data from analytics firm Kpler showed.
Sanctions experts have long said that the independent refineries are somewhat immune to the full effect of US sanctions as they have limited exposure to the US financial system.
