US Sanctions Target Chinese Refinery for Iranian Oil Purchases
Amid escalating tensions with Iran, the Trump administration has imposed sanctions on a Chinese refinery, Shandong Shengxing Chemical, which is accused of purchasing over $1 billion worth of Iranian crude oil. This action is part of a broader effort by Washington to persuade Beijing to reduce its oil imports from Iran, thereby increasing pressure on Tehran.
Details of the Sanction
According to the U.S. Department of the Treasury, Shandong Shengxing Chemical was specifically singled out for its alleged procurement of Iranian oil from a front company linked to Iran’s Islamic Revolutionary Guard Corps (IRGC), in direct violation of U.S. sanctions. This step marks the second instance within a month where the Trump administration has targeted a “teapot” refinery, a term referring to the independent Chinese refineries that primarily purchase Iranian crude oil.
Government Statements
Treasury Secretary Scott Bessent emphasized the risks associated with engaging in transactions related to Iranian oil, 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 reaffirmed the U.S. commitment to disrupt any support for Iran’s oil supply chain, which is utilized to fund terrorist activities.
Impact on China-US Relations
This sanction package represents the sixth wave of sanctions instituted by the Trump administration under its “maximum pressure campaign” against Iran, coinciding with ongoing trade tensions between Washington and Beijing. The U.S. has recently instituted a significant 145 percent tariff on Chinese imports, with China responding by imposing tariffs of 125 percent on American products.
Criticism of the Biden Administration
Criticism has also been directed at the Biden administration, particularly from Republican legislators, for not exerting enough pressure on China to cease its oil purchases from Iran. Dennis Wilder, a former White House Asia adviser under President George W. Bush, highlighted that the previous administration’s approach allowed China to procure an overwhelming 90 percent of Iran’s oil exports. He noted that the fear of rising oil prices affecting U.S. consumers contributed to this leniency.
Ongoing Diplomatic Efforts
The new sanctions coincide with diplomatic efforts by the Trump administration to negotiate with Tehran regarding its nuclear program, with special envoy Steve Witkoff reportedly engaging in discussions with Iranian Foreign Minister Abbas Araghchi in Oman.
Reaction from China
Liu Pengyu, spokesperson for the Chinese embassy in Washington, condemned the sanctions, stating that they represent an abuse of unilateral measures that disrupt normal economic relations and violate the rights of Chinese businesses.