China orders firms to ignore US Iran sanctions, daring US to enforce crackdown
Expert calls the move 'a measure of defiance by Beijing' as Trump administration intensifies pressure on Tehran's oil revenue
By Morgan Phillips Fox News
Published May 7, 2026 6:00am EDT
China has ordered companies to disregard U.S. sanctions targeting Iranian oil, forcing a direct test of Washington’s ability to enforce its crackdown on Iran.
A new directive, issued through China’s Commerce Ministry Sunday, invokes a 2021 "blocking statute" that prohibits firms from complying with foreign sanctions deemed illegitimate. The order applies to several Chinese refiners accused by the United States of purchasing Iranian crude, including major independent processors known as "teapot" refineries.
The move represents a shift from years of opaque workarounds to more explicit state-backed resistance, as Beijing signals it will not cooperate with U.S. efforts to cut off a key source of revenue for Iran.
"This is unprecedented. It’s a major escalation in terms of China’s response to U.S. economic statecraft. It is a measure of defiance by Beijing," said Max Meizlish, a senior research analyst at the Foundation for Defense of Democracies.
The escalation comes as the Trump administration intensifies its sanctions campaign, targeting Chinese refiners and warning financial institutions they could face penalties for facilitating oil transactions between Iran and China.
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