China has condemned U.S. sanctions against Chinese companies, specifically targeting the refinery of Hengli Petrochemical, as illegal and unilateral.

The dispute intensifies trade tensions between the two nations just before high-level diplomatic engagements. The move signals a precarious environment for international commerce as both powers clash over energy imports and trade norms.

U.S. officials announced the sanctions on April 27, 2024 [1]. The measures were imposed following allegations that Hengli Petrochemical purchased Iranian crude oil. The company's refinery is located in Dalian, Liaoning Province.

Spokespersons from China's Foreign Ministry and Ministry of Commerce issued rebuttals on the same day the sanctions were announced. The Foreign Ministry said the U.S. actions were a serious violation of the principles of fair trade.

"China always opposes unilateral sanctions that have no legal basis and will protect the legitimate rights and interests of Chinese enterprises," a Chinese Foreign Ministry spokesperson said [2].

The Ministry of Commerce added that it would defend the interests of its firms. "We strongly oppose the decision of the United States to impose sanctions on Hengli Petrochemical and will defend the interests of our companies," a spokesperson for the Ministry of Commerce said [3].

Beijing maintains that the U.S. move is unfounded and violates international trade norms. The Foreign Ministry spokesperson said, "The United States has taken illegal and unilateral measures against Chinese firms, which we consider a serious violation of the principles of fair trade" [4].

These diplomatic frictions occur as President Donald Trump is scheduled to visit Beijing on May 14–15, 2024 [5]. The timing of the sanctions and the subsequent Chinese condemnation suggest a volatile atmosphere preceding the summit.

“"China always opposes unilateral sanctions that have no legal basis"”

The imposition of sanctions on a major refinery like Hengli Petrochemical underscores the U.S. strategy of using economic levers to curb Iranian oil exports. By timing these measures shortly before a presidential visit to Beijing, the U.S. may be attempting to establish leverage or signal a hard line on trade and security. Conversely, China's immediate and sharp rebuke indicates that it views these 'unilateral' measures as a direct challenge to its corporate sovereignty and a potential spoiler for upcoming diplomatic talks.