China Invokes Blocking Statute Against U.S. Sanctions on Oil Refiners
- On May 2, China’s Ministry of Commerce (MOFCOM) invoked the Blocking Statute against U.S. sanctions on five local oil refiners.
- This marks the first use of the statute since its issuance in 2021.
- The affected companies include Hengli Petrochemical, Shandong Shouguang Luqing Petrochemical, and others.
- The U.S. Office of Foreign Assets Control (OFAC) claims these companies provide significant revenue to Iran’s regime.
- Chinese firms can now sue for losses incurred due to these sanctions.
China’s MOFCOM has taken a significant step by invoking the Blocking Statute against U.S.-imposed sanctions on five local oil refiners, challenging what it calls an improper extraterritorial application of foreign laws.
This move forces global companies to choose between compliance with either U.S. or Chinese regulations, potentially affecting their market access in one of these major economies. (Source)
