China defies US sanctions over Iranian oil using ‘blocking rule’ ahead of Trump-Xi summit

China has stepped up its resistance to the US sanctions over Iranian oil ahead of President Trump’s highly anticipated visit to Beijing planned for May 14-15.

In a recent move of resistance, China’s Commerce Ministry not only instructed companies not to comply with US’ blacklisting of several Chinese refineries over import of Iranian oil, but also invoked “blocking rule” for the first since 2021.

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Under this blocking rule, the country can counteract foreign law if they are deemed to be violating international norms and trade rules.

In late April, the Trump administration imposed sanctions on Hengli Petrochemical refinery for importing billions of dollars’ worth of Iranian oil.

Hengli Petrochemical Refinery is considered China’s second-largest “teapot” or independent refinery, also one of Iran’s largest customers of petroleum products and crude oil.

Dylan Loh, a professor at Singapore’s Nanyang Technological University who studies China’s foreign policy, said, “It sends a broader message that China is willing and can resist what it views as unilateral and unfair sanctions that hurt Chinese interests.”

As per analysts observation, China is using its own policy tools to push back. Recently, it also blocked Meta’s acquisition of Manus startup on the grounds of national security.

As Donald Trump and Xi Jinping are set to meet next week, the recent move is seen as a tactical response from China, preventing Washington from “creating bargaining chips” ahead of this high-profile summit.