Beijing: China's Commerce Ministry (MOFCOM) issued on Saturday a prohibition order instructing parties not to recognize or comply with US sanctions on five Chinese firms, citing its review mechanism. The ministry stated that the order, effective immediately, aims to safeguard national sovereignty, security, and development interests while protecting the legitimate rights of Chinese entities and citizens.

According to Anadolu Agency, the US imposed sanctions over alleged involvement in Iranian petroleum transactions, placing five firms, including Hengli Petrochemical (Dalian) Refining Co and Shandong Shouguang Luqing Petrochemical Co, on its Specially Designated Nationals (SDN) list, thereby freezing assets and banning transactions. The ministry indicated that the move was based on China's national security and anti-foreign sanctions laws and the 2021 Blocking Rules, following a review that deemed the US measures to be an improper extraterritorial application.

This action marks the first instance of MOFCOM invoking its blocking statute. The US Treasury in April sanctioned China's Hengli Petrochemical (Dalian) Refining Co over alleged purchases of billions of dollars in Iranian oil, while the Trump administration had previously targeted the other four refineries as part of efforts to curb Tehran's oil revenues.