A prohibition order with immediate effect
China's Ministry of Commerce announced on Saturday a ban forbidding any recognition, enforcement or compliance with United States sanctions aimed at five Chinese companies. The order took effect the same day. It covers penalties imposed under US executive order 13902, executive order 13846 and related measures, according to the ministry notice.[S1]
The five firms were placed on Washington's Specially Designated Nationals List, a designation that exposes them to asset freezes and restrictions on transactions. Among the named companies are Shandong Shouguang Luqing Petrochemical Co Ltd and Shandong Jincheng Petrochemical Group. US authorities based the designations on allegations that the firms took part in Iranian petroleum transactions.[S1]
Beijing frames the move as sovereignty protection
A ministry spokesperson said in a separate statement that the prohibition is intended to defend China's sovereignty, security and development interests, and to protect the lawful rights of Chinese citizens, legal persons and other entities. The spokesperson also said Beijing has consistently rejected unilateral sanctions that lack United Nations authorization and have no foundation in international law.[S1]
The commerce official described the order as a concrete application of China's Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures, which the State Council approved in 2021. The spokesperson added that issuing the ban does not affect China's performance of its international obligations, nor its protection of the lawful rights and interests of foreign-invested enterprises operating under Chinese law.[S1]
Monitoring and follow-up action pledged
The ministry said it will keep watching cases that involve improper extraterritorial application of foreign laws and measures. Where the conditions set out in the 2021 counter-extraterritoriality rules are satisfied, the spokesperson said, the ministry will take follow-up action in line with the law.[S1]
The announcement drew coverage from multiple outlets, which reported that Beijing is pushing back against the US sanctions on Chinese companies and vowed to respond.[S2][S4]
