US Imposes New Sanctions on Chinese Refinery for Iranian Oil Transactions
The Trump administration has escalated its approach towards China by implementing sanctions aimed at a Chinese refinery accused of engaging in the purchase of Iranian crude oil. This move is part of a broader effort by Washington to urge Beijing to limit its imports from Tehran, thereby amplifying pressure on the Iranian government.
Details of the Sanctions
The U.S. Department of the Treasury has specifically targeted Shandong Shengxing Chemical, alleging that the company purchased over $1 billion worth of Iranian crude oil. This crude was procured from sources linked to an intermediary company operating for Iran’s Islamic Revolutionary Guard Corps, which violates U.S. sanctions.
This initiative represents the second instance within a month in which President Trump has imposed sanctions on independent Chinese refineries, colloquially known as “teapots,” recognized for being significant buyers of Iranian oil.
Statements from U.S. Officials
Treasury Secretary Scott Bessent addressed the implications of these sanctions, stating, “Any refinery, company, or broker that chooses to purchase Iranian oil or facilitate Iran’s oil trade places itself at serious risk.” He further emphasized that the U.S. remains steadfast in its commitment to disrupting entities that facilitate Iran’s oil supply chain, which are often connected to terrorist activities.
Additional Measures Against Iran
In conjunction with targeting the Chinese refinery, the Treasury also sanctioned various companies and vessels involved in transporting Iranian oil to China. These transport vessels are part of a so-called “shadow fleet” designed to evade detection from authorities.
This recent action marks the sixth round of sanctions imposed by the Trump administration against Iran as part of its “maximum pressure campaign” to deter its nuclear advancements and regional influence.
Ongoing Trade Tensions
The sanctions come at a time when trade relations between the U.S. and China are particularly tense. Having initiated a trade war in January, the Trump administration has imposed a staggering 145% tariff on Chinese imports, to which China has retaliated with corresponding tariffs on U.S. goods.
Biden Administration’s Stance Criticized
Critiques have arisen regarding the Biden administration’s handling of Chinese oil imports. Republican figures have condemned the administration for not exerting sufficient pressure on Beijing to prevent oil transactions with Iran. Dennis Wilder, a former Asia adviser to President George W. Bush, accused President Biden of overlooking China’s acquisition of up to 90% of Iran’s oil exports out of fear that strict enforcement of broader sanctions could lead to surging oil prices affecting American consumers.
Wilder stated, “Chinese oil purchases have helped build a close relationship between Tehran and Beijing in which China benefits by gaining greater commercial access in the region.”
Diplomatic Efforts Amid Sanctions
Concurrent to the sanctions, the Trump administration is engaged in discussions with Iran regarding its nuclear program, raising hopes for a potential resolution to ongoing tensions in the Middle East. Special envoy Steve Witkoff has been involved in indirect negotiations with Iranian officials.
Chinese Response
In response to the sanctions, the Chinese embassy’s spokesperson, Liu Pengyu, expressed strong opposition, labeling the U.S. approach as an abuse of unilateral sanctions that disrupts international trade and undermines the legitimate rights of Chinese businesses.
As the geopolitical landscape evolves, the implications of these sanctions and trade policies will continue to shape relations between the U.S., China, and Iran.
