{"id":6507,"date":"2026-05-07T11:35:38","date_gmt":"2026-05-07T11:35:38","guid":{"rendered":"https:\/\/pronews.in\/index.php\/2026\/05\/07\/what-is-chinas-anti-sanctions-law-and-how-does-it-work\/"},"modified":"2026-05-07T11:35:38","modified_gmt":"2026-05-07T11:35:38","slug":"what-is-chinas-anti-sanctions-law-and-how-does-it-work","status":"publish","type":"post","link":"https:\/\/pronews.in\/index.php\/2026\/05\/07\/what-is-chinas-anti-sanctions-law-and-how-does-it-work\/","title":{"rendered":"What is China\u2019s anti-sanctions law and how does it work?"},"content":{"rendered":"<div aria-live=\"polite\" aria-atomic=\"true\">\n<p>China has ordered its citizens and companies not to comply with United States sanctions against five Chinese refineries accused of handling Iranian oil, deploying a law intended to counteract \u201cextra-territorial\u201d punitive measures for the first time.<\/p>\n<p>China\u2019s Ministry of Commerce issued the <a href=\"http:\/\/www.aljazeera.com\/economy\/2026\/5\/3\/china-blocks-us-sanctions-against-five-teapot-refineries\">\u201cprohibition order\u201d<\/a> after the US Department of the Treasury last month announced sanctions targeting one of China\u2019s biggest independently run <a href=\"http:\/\/www.aljazeera.com\/news\/2026\/4\/3\/how-chinas-teapot-refineries-are-cushioning-it-from-iran-war-oil-crisis\">\u201cteapot\u201d refineries<\/a>.<\/p>\n<section>\n<h2>Recommended Stories <\/h2>\n<p><span>list of 4 items<\/span><\/p>\n<ul>\n<li><span>list 1 of 4<\/span><a href=\"http:\/\/www.aljazeera.com\/video\/newsfeed\/2026\/5\/6\/us-pauses-plan-to-guide-ships-through-the-strait-of-hormuz\">US pauses plan to guide ships through the Strait of Hormuz<\/a><\/li>\n<li><span>list 2 of 4<\/span><a href=\"http:\/\/www.aljazeera.com\/video\/newsfeed\/2026\/5\/6\/romanias-pro-eu-government-ousted-after-no-confidence-vote\">Romania\u2019s pro-EU government ousted after no-confidence vote<\/a><\/li>\n<li><span>list 3 of 4<\/span><a href=\"http:\/\/www.aljazeera.com\/news\/2026\/5\/6\/irans-araghchi-holds-talks-with-chinas-wang-yi-in-beijing\">China calls for end to Iran war and Hormuz to reopen during Araghchi visit<\/a><\/li>\n<li><span>list 4 of 4<\/span><a href=\"http:\/\/www.aljazeera.com\/video\/newsfeed\/2026\/5\/6\/us-president-trump-restarts-pope-feud-ahead-of-rubio-visit-to-vatican\">US president Trump restarts Pope feud ahead of Rubio visit to Vatican<\/a><\/li>\n<\/ul>\n<p><span>end of list<\/span><\/section>\n<p>The move marks a significant escalation in Beijing\u2019s efforts to counter what it views as the unjustified \u201clong-arm jurisdiction\u201d of US laws and regulations.<\/p>\n<p>Here is what we know about China\u2019s order and its anti-sanctions regime:<\/p>\n<h2 id=\"what-does-china-s-order-say\">What does\u00a0China\u2019s order say?<\/h2>\n<p>In its announcement on Saturday, China\u2019s Ministry of Commerce stipulated that the US sanctions on Hengli Petrochemical (Dalian) refinery and four other refineries previously targeted by Washington \u201cshall not be recognised, enforced or complied with\u201d.<\/p>\n<p>The ministry said the sanctions \u201cimproperly\u201d restricted normal trade and business activities in violation of international law, and it issued its order to safeguard China\u2019s \u201cnational sovereignty, security, and development interests\u201d, as well as the \u201clawful rights and interests of Chinese citizens\u201d.<\/p>\n<p>\u201cThe Chinese government has consistently opposed unilateral sanctions that lack authorisation from the United Nations and a basis in international law,\u201d the ministry said in a statement.<\/p>\n<p>The US Treasury Department imposed the latest sanctions after accusing Hengli of generating hundreds of millions of dollars in revenue for Iran\u2019s military via crude oil purchases, calling the refinery \u201cone of Tehran\u2019s most valued customers\u201d.<\/p>\n<p>China is Iran\u2019s largest trade partner and by far the biggest buyer of Iranian oil.<\/p>\n<p>Chinese buyers received more than 80 percent of Iran\u2019s oil shipments in 2025, according to market intelligence firm Kpler.<\/p>\n<figure id=\"attachment_4552298\" aria-describedby=\"caption-attachment-4552298\"><img decoding=\"async\" data-recalc-dims=\"1\" loading=\"lazy\" src=\"http:\/\/www.aljazeera.com\/wp-content\/uploads\/2026\/05\/2025-06-04T061223Z_987027873_RC2HVEAZ055D_RTRMADP_3_CHINA-RAREEARTHS-2-1778125034.jpg?w=770&#038;resize=770%2C513&#038;quality=80\" alt=\"Commerce\" fetchpriority=\"low\"><figcaption id=\"caption-attachment-4552298\">A Chinese flag flutters at the Chinese Ministry of Commerce building in Beijing, China, on June 4, 2025 [Florence Lo\/Reuters]<\/figcaption><\/figure>\n<h2 id=\"how-does-china-s-anti-sanctions-law-work\">How does China\u2019s anti-sanctions law work?<\/h2>\n<p>Under the law, Chinese citizens and organisations restricted from engaging in business activities by foreign legislation are required to report their circumstances to the Ministry of Commerce within 30 days.<\/p>\n<p>Those who fail to report their situation to the authorities face potential penalties, including warnings and fines.<\/p>\n<p>After determining within a 30-day review period that a business or individual has been subject to an \u201cunjustified extra-territorial application\u201d, the ministry can issue an order barring the party from complying with the legislation.<\/p>\n<p>Businesses that suffer losses due to parties\u2019 compliance with foreign sanctions can initiate court proceedings against them for compensation, and in some cases may receive \u201cnecessary support\u201d from the government.<\/p>\n<p>Beijing introduced the law in 2021 after years of tensions with US President Donald Trump\u2019s first administration over sanctions targeting Chinese firms and technology, casting the measure as a counter to \u201crising unilateralism\u201d.<\/p>\n<p>Naimeh Masumy, a PhD candidate at Maastricht University who has studied China\u2019s anti-sanctions measures, said the law marked the introduction of a codified system for prosecuting its longstanding grievances against the US sanctions regime.<\/p>\n<p>\u201cBefore this, China mostly relied on ad hoc diplomatic protests and informal pressures,\u201d Masumy told Al Jazeera.<\/p>\n<p>\u201cBy\u00a0formalising\u00a0this resistance into statute law, China is sending a clear signal: it views US sanctions as a systemic, long-term challenge that requires a structural legal response, rather than just reacting case-by-case.\u201d<\/p>\n<h2 id=\"how-significant-is-china-s-latest-move\">How significant is\u00a0China\u2019s\u00a0latest move?<\/h2>\n<p>The order is noteworthy as this is the first time that Beijing has invoked its anti-sanctions measures, formally known as the \u201cRules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures\u201d.<\/p>\n<p>\u201cThe move signals that Beijing is taking a more assertive approach to countering sanctions,\u201d Dominic Chiu, a China analyst at political risk adviser Eurasia Group, told Al Jazeera.<\/p>\n<p>\u201cThey are\u00a0demonstrating\u00a0a lower threshold for deploying their legal and regulatory toolkit to counter US sanctions,\u201d Chiu said, adding that Beijing has been expanding its\u00a0range of retaliatory instruments since the first Trump administration.<\/p>\n<h2 id=\"what-does-this-mean-for-companies-navigating-tensions-between-the-us-and-china\">What does this mean for companies navigating tensions between the US and China?<\/h2>\n<p>It\u00a0potentially puts them in a difficult position.<\/p>\n<p>Companies risk facing the wrath of Washington or Beijing, depending on which measures they comply with.<\/p>\n<p>Maastricht University\u2019s Masumy said firms are likely to approach the competing pressures based on their respective levels of exposure to the US and Chinese markets.<\/p>\n<p>\u201cFor most companies with any significant exposure to US markets, transactions in US dollars, or relationships with American banks, the decision is relatively clear,\u201d she said.<\/p>\n<p>\u201cThe consequences from the US are usually far more immediate and devastating than anything Beijing might impose.\u201d<\/p>\n<p>But the calculation \u201cshifts\u00a0considerably\u201d for\u00a0companies heavily\u00a0focused on\u00a0China and Chinese\u00a0state-owned enterprises,\u00a0Masumy\u00a0said.<\/p>\n<p>\u201cFor these entities, complying with the blocking statute becomes a more realistic expectation \u2013 and the risk of US punishment becomes the cost of doing business within China\u2019s regulatory framework,\u201d she said.<\/p>\n<p>Eurasia Group\u2019s Chiu said he does not expect the order to have an immediate material impact as its power largely rests on whether Beijing decides to impose penalties and the affected refineries choose to sue.<\/p>\n<p>But China\u2019s stance means that firms may increasingly face \u201cbinary choices between complying with US sanctions and risking Chinese countermeasures, or vice versa\u201d, Chiu said.<\/p>\n<figure id=\"attachment_4552296\" aria-describedby=\"caption-attachment-4552296\"><img decoding=\"async\" data-recalc-dims=\"1\" loading=\"lazy\" src=\"http:\/\/www.aljazeera.com\/wp-content\/uploads\/2026\/05\/AP24344278442554-1778124932.jpg?w=770&#038;resize=770%2C513&#038;quality=80\" alt=\"US\" fetchpriority=\"low\"><figcaption id=\"caption-attachment-4552296\">The US Department of the Treasury building in Washington, DC, the United States, on December 7, 2024 [Jose Luis Magana\/AP]<\/figcaption><\/figure>\n<p>Chinese state media has been eager to paint Beijing\u2019s efforts as instructive to other countries seeking to counter US pressure.<\/p>\n<p>In an unsigned commentary, the state-run Global Times hailed the anti-sanctions order as a \u201cpractical example for the international community to resist unilateral bullying and oppose \u2018long-arm jurisdiction&#8217;\u201d.<\/p>\n<p>Masumy\u00a0said the anti-sanctions law\u2019s most significant long-term effect could be to inspire other powers such as Russia and the European Union.<\/p>\n<p>\u201cA Chinese model \u2013 even an imperfect one \u2013 of codified counter-sanctions law gives these states a template and, perhaps more importantly, a degree of political legitimacy for doing the same,\u201d she said.<\/p>\n<p>Chiu, however,\u00a0expressed doubt\u00a0that China\u2019s model would be of much use to countries already in Washington\u2019s\u00a0crosshairs.<\/p>\n<p>\u201cMost adversaries such as Iran or Russia are already cut off from the US financial system,\u201d\u00a0Chiu\u00a0said.<\/p>\n<p>\u201cThis makes it less compelling for entities operating within their countries to comply with US sanctions,\u201d he said.<\/p>\n<p>\u201cIf Russian or Iranian firms have already been severed from the dollar-clearing access, then a domestic blocking order telling them not to comply adds little practical value.\u201d<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>China has ordered its citizens and companies not to comply with United States sanctions against five Chinese refineries accused of handling Iranian oil, deploying a law intended to counteract \u201cextra-territorial\u201d punitive measures for the first time. China\u2019s Ministry of Commerce issued the \u201cprohibition order\u201d after the US Department of the Treasury last month announced sanctions &#8230; <a title=\"What is China\u2019s anti-sanctions law and how does it work?\" class=\"read-more\" href=\"https:\/\/pronews.in\/index.php\/2026\/05\/07\/what-is-chinas-anti-sanctions-law-and-how-does-it-work\/\" aria-label=\"Read more about What is China\u2019s anti-sanctions law and how does it work?\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":6508,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-6507","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-travel"],"_links":{"self":[{"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/posts\/6507","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/comments?post=6507"}],"version-history":[{"count":0,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/posts\/6507\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/media\/6508"}],"wp:attachment":[{"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/media?parent=6507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/categories?post=6507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/tags?post=6507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}