China's Ministry of Commerce (MOFCOM) on Saturday issued a prohibition order in accordance with Rules on Counteracting Unjustified Extraterritorial Application of Foreign Legislation and Other Measures (the 2021 Blocking Rules), which explicitly stated that China shall not recognize, enforce, or give effect to the unilateral sanctions imposed by the US, which listed five Chinese petrochemical enterprises on the Specially Designated Nationals List and imposed asset freezes and transaction bans on grounds of alleged oil transactions with Iran.

A petroleum refining plant in China (File photo: VCG)
This move marks a crucial step for China's foreign-related legal tools to move from institutional framework to practical enforcement. Leveraging the power of the rule of law, China has delivered a targeted response to US long-arm jurisdiction. The move defends the legitimate rights and interests of Chinese enterprises while heeding the international community's widespread call to oppose hegemony, injecting justice into efforts to safeguard the international economic order.
China values its relations with the US and emphasizes that the essence of China-US economic and trade relations is mutual benefit and win-win outcomes. China advocates resolving concerns through dialogue on an equal-footing. However, since 2025, the US has imposed sanctions on Chinese refining, shipping and port enterprises under the pretext of "involvement in Iranian oil transactions," freezing assets and prohibiting transactions. Under such circumstances, China's issuance of the prohibition order in accordance with the Blocking Rules is a necessary measure to safeguard its national and corporate interests. Meanwhile, the Blocking Rules provide various institutional arrangements to steadily protect the legitimate rights and interests of Chinese citizens, legal persons and other organizations.
The US' arbitrary imposition of unilateral sanctions and reckless pursuit of "long-arm jurisdiction" constituted hegemonic practices that breach sovereign boundaries and coerce the global market. By placing its domestic law above international law and wantonly interfering in the normal economic and trade activities of enterprises in other countries, such actions completely violate the basic principle of sovereign equality in international relations and have long faced resolute opposition from the international community.
As early as 1996, the European Union adopted the Council Regulation protecting against the effects of the extra-territorial application of legislation adopted by a third country, blocking the extra-territorial application of the US Helms-Burton Act and D'Amato Act, which restricted trade with Cuba, Iran, and other countries. Today, the US has escalated its abuse of secondary sanctions, wielding the sanctions stick against law-abiding Chinese enterprises. This seriously infringes upon the legitimate rights and interests of Chinese business entities and disrupted the stability of the global energy supply chain. In the face of hegemonic pressure, China's issuance of a prohibition order in accordance with the law conforms to international practice and does not affect China's assumption and fulfillment of its international obligations.
In recent years, in response to the evolving international economic and trade landscape, China has strengthened the development of its foreign-related legal system. It has established a series of legal tools, including the Anti-Foreign Sanctions Law, the Rules on Countering Foreign States' Unlawful Extraterritorial Jurisdiction Measures, and the 2021 Blocking Rules. Laws such as the Foreign Trade Law, Export Control Law, and Foreign Investment Law have also been strengthened with provisions to safeguard the international economic and trade order, protect national sovereignty, security, and development interests, and defend the legitimate rights and interests of foreign trade operators. These legal instruments complement one another, each with its own emphasis, working together synergistically.
By issuing the prohibition order, China upholds the approach of countering hegemony with rules and defending fairness with the rule of law. It neither escalated confrontation nor made compromises, but instead negates the extraterritorial effect of the illegal US sanctions through lawful and compliant means, restoring international law to its original principle of sovereign equality. This measure not only provides relief to the affected enterprises and ensures the security of domestic industrial and supply chains, but also offers a practical example for the international community to resist unilateral bullying and oppose "long-arm jurisdiction." It demonstrates China's responsibility as a major country in upholding justice and defending order.
China has always advocated resolving international differences through equal dialogue, firmly upholding the multilateral trading system, and promoting inclusive economic globalization that benefits all. In the face of the countercurrent of unilateralism, China will continue to make full use of its foreign-related legal toolkit, remain resolute and be adept at defending its interests. While resolutely safeguarding its own sovereignty, security, and development interests, China will join hands with all peace-loving and rule‑of‑law-abiding countries to resist hegemonic acts and jointly promote the building of a more just, equitable, inclusive, and mutually beneficial global economic governance system.