Trending Now - China Challenges U.S. Sanctions Amid Iran Oil Tensions

WHO:

Newsweek - The U.S. Treasury Department is involved in targeting businesses associated with Chinese "teapot refineries."

Fortune - President Trump and Xi Jinping are the leaders involved in the upcoming summit.

WHAT:

Bloomberg Markets - Beijing has instructed its companies to disregard U.S. sanctions on a major oil refiner.

Fortune - China has ordered its companies to ignore U.S. sanctions on private refiners linked to the Iranian oil trade.

Fortune - Hengli Petrochemical (Dalian) Refinery Co. was sanctioned last month.

Fortune - Hengli Petrochemical Co. anticipates securing total banking credit of 235 billion yuan ($34.4 billion) for itself and all units this year.

WHERE:

Fortune - Hengli Petrochemical is located in Dalian, China.

Fortune - The commentary on the retaliation was published on the People’s Daily app, a state media outlet in China.

WHEN:

Fortune - The meeting between President Trump and Xi Jinping is scheduled for later this month.

Fortune - The blocking measure was introduced in 2021.

WHY:

Fortune - China’s defiance of U.S. sanctions is framed as a response to U.S. overreach and unilateral sanctions deemed illegitimate.

Fortune - The Chinese government has consistently opposed unilateral sanctions lacking UN authorization and a basis in international law.

HOW:

Fortune - China is deploying a blocking measure aimed at protecting its firms from foreign laws it deems unjustified.

Fortune - Transactions in the yuan are being considered as a workaround for banks to avoid U.S. scrutiny.

Fortune - Companies can apply for exemptions from the rules under the blocking order if compliance would cause exceptional hardship or inconvenience.

(UPDATED May 4, 2026 21:20 UTC)

The U.S. Treasury Department is now targeting businesses linked to Chinese "teapot refineries," as President Trump and Xi Jinping prepare for a summit later this month. In a bold move, China has instructed its companies to disregard U.S. sanctions on private refiners associated with the Iranian oil trade, including the recently sanctioned Hengli Petrochemical in Dalian, which expects to secure a staggering 235 billion yuan in banking credit this year. This defiance is framed by China as a necessary response to what it views as U.S. overreach, with the Chinese government actively opposing unilateral sanctions that lack UN authorization and a basis in international law.