Beijing hits back at US sanctions on Chinese firms

China has imposed a ban barring any recognition, enforcement, or compliance with United States sanctions targeting five Chinese companies over their alleged involvement in Iranian petroleum transactions, according to a notice issued by the Ministry of Commerce on Saturday.

The prohibition order took effect immediately and applies to sanctions imposed by US executive order 13902, executive order 13846, and related measures.

A ministry spokesperson said in a separate statement that the move aims to safeguard China's sovereignty, security, and development interests while protecting the legitimate rights of Chinese citizens, legal persons, and other entities.

The US sanctions, based on allegations of involvement in Iranian petroleum transactions, target five Chinese companies, including Shandong Shouguang Luqing Petrochemical Co Ltd and Shandong Jincheng Petrochemical Group.

The companies have been placed on the US' Specially Designated Nationals List, which subjects them to asset freezes and transaction bans.

China has consistently opposed unilateral sanctions that lack United Nations authorization and a basis in international law, the Ministry of Commerce spokesperson said, adding that the prohibition order represents a concrete step under China's Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures, which was approved by the State Council in 2021.

The issuance of the ban does not affect China's fulfillment of its international obligations or its protection of the legitimate rights and interests of foreign-invested enterprises under Chinese law, the commerce official stressed.

The spokesperson said the Ministry of Commerce will continue to closely monitor cases involving the improper extraterritorial application of foreign laws and measures, and will take follow-up action in accordance with the law where conditions set out in the Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures are met.