China Invokes Blocking Rules to Counter US Sanctions
Get the Geopolitics newsletter
Daily geopolitics — wars, elections, sanctions, the diplomatic moves that move markets. Free.
- China invoked its 2021 “Blocking Rules” — the first time it has ordered citizens and firms not to comply with U.S. sanctions.
- U.S. sanctioned five Chinese refiners, including Hengli Petrochemical, for buying Iranian oil in late April.
- China’s Commerce Ministry issued an immediate ban prohibiting any recognition, enforcement or compliance with those U.S. sanctions.
- Carl Li of Zhong Lun Law Firm said the move builds a “systemic legal fortress” to shield Chinese industry from foreign pressure.
- Yan Xing of the Guangzhou Institute of the Greater Bay Area warned the ban signals a red line before the upcoming Trump‑Xi summit.
Why it matters: Chinese and foreign firms now face a legal catch‑22, forced to choose between U.S. sanctions compliance and Beijing’s new blocking order, risking fines, supply‑chain disruptions, and heightened geopolitical tension ahead of the Trump‑Xi summit.
