CHINA has issued a blocking order on US sanctions against five of its oil-refining companies accused of buying oil from Iran.

The Ministry of Commerce said on Saturday that US sanctions on Hengli Petrochemical (Dalian) Refinery and four others improperly interfere with its trade with third countries, “in violation of international law and the basic norms governing international relations.”

The order from Beijing is the first actual use of powers brought in in 2021 designed to counter “long-arm jurisdiction,” primarily by the United States though sometimes followed by copycat measures by its allies, which illegally disrupt trade between other countries.

The US uses its economic clout to force compliance by imposing harsh penalties on businesses which breach its unilateral sanctions, so for instance a British bank which carried out transactions with Cuba could be pursued through US courts. Sometimes the US or allied militaries directly seize property belonging to other countries to enforce their sanctions, a violation of international law.

Under the Chinese blocking rules, complying with the specified US sanction is illegal in China. Companies which stop doing business with a company or country targeted by the sanction can face legal action, countering US pressure to apply the sanction with Chinese pressure not to. Victim companies can apply for compensation for lost business from companies applying the sanction that has been deemed illegal. The intention is to stop obedience to US measures automatically being the safest option.

The Commerce Ministry said besides ensuring these US sanctions are not “recognised, enforced or observed” it would closely monitor any further “unjustified extraterritorial application of foreign laws and measures.”