China's Ministry of Commerce issued a prohibition order blocking United States sanctions imposed on five Chinese refiners accused of buying oil from Iran. The order stipulates that the U.S. sanctions shall not be recognized, enforced, or complied with within China.

The injunction covers measures against Hengli Petrochemical (Dalian) Refinery and four other independent refineries known as teapot refineries: Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical, and Shandong Shengxing Chemical. The U.S. sanctions block the five refiners from participating in the U.S. financial system and penalize anyone doing business with them.

The Ministry of Commerce said the sanctions "improperly restrict business between Chinese enterprises and third countries in violation of international law and the basic norms governing international relations." The ministry added that the Chinese government has consistently opposed unilateral sanctions that lack UN authorization and basis in international law.

On April 24, the U.S. Treasury Department announced sanctions on the five refiners. The Treasury Department called Hengli Petrochemical "one of Tehran's most valued customers" and said the company generated hundreds of millions of dollars in revenue for the Iranian military through crude oil purchases. The Trump administration imposed sanctions on the other four refineries and other facilities last year.

China gets more than half of its oil from the Middle East, much of it from Iran. China bought more than 80 percent of the oil Iran shipped in 2025, according to commodities data firm Kpler.

Teapot refineries operate independently and are generally smaller than facilities run by state-owned oil giants such as Sinopec. They account for a quarter of Chinese refinery capacity.

Domestic demand for refined products in China has been low recently. U.S. sanctions have created additional hurdles for Chinese refiners, including difficulties selling refined products under their correct place-of-origin markings.