China directs companies to disregard Trump oil sanctions on Iran, testing US resolve to enforce them

The refineries are in the position of either complying with the Chinese Communist Party's order or complying with U.S. sanctions.

Published: May 7, 2026 1:06pm

China’s Commerce Ministry has issued a new directive that prohibits Chinese companies from complying with sanctions that have been designated as illegitimate and applies to Chinese refiners accused by the United States of purchasing Iranian crude oil. 

The order Sunday applies to several Chinese refiners that the U.S. has accused of purchasing Iranian oil, 

The directive issued Sunday will test the ability of the U.S. to enforce sanctions and cut off a primary revenue source for Iran, according to Fox News.  

Max Meizlish, a senior research analyst at the Foundation for Defense of Democracies, told Fox the move is unprecedented and represents a major escalation in China's response to U.S. efforts to control national economies, amid a war with Iran that veered from efforts to stop the rouge nation from fully a developing nuclear weapon to a battle to the global oil supply.

The refineries, he said, either comply with the Chinese Communist Party's order or the U.S. sanctions. 

The Trump administration has been targeting Chinese refineries for purchasing Iranian oil and warning financial institutions that facilitating oil transactions between Iran and China could result in penalties. 

Treasury Secretary Scott Bessent said that China buys about 90% of Iran's oil, which makes them a primary finder of the "largest sponsor of state terrorism." 

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