The Trump administration has slapped sanctions on a Chinese refinery for allegedly purchasing over $1 billion worth of Iranian crude oil, intensifying its efforts to cut Tehran’s oil revenues and pressure Beijing.
Shandong Shengxing Chemical, an independent “teapot” refinery in China, was sanctioned for buying crude from sources linked to a front company for Iran ’s Islamic Revolutionary Guard Corps (IRGC), which the U.S. designates as a foreign terrorist organization.
This marks the second time in a month that the U.S. has targeted a Chinese teapot refinery — major buyers of Iranian oil — for violating sanctions. Treasury Secretary Scott Bessent warned that any entity involved in Iran’s oil trade faces “serious risk,” adding, “The United States is committed to disrupting all actors providing support to Iran’s oil supply chain, which the regime uses to support its terrorist proxies and partners.”
In addition to Shengxing, the Treasury imposed sanctions on several companies and vessels accused of transporting Iranian oil via a “shadow fleet” designed to evade detection.
This is the sixth round of sanctions in Trump’s “maximum pressure” campaign against Iran. The move comes amid heightened U.S.-China tensions, with both countries locked in a deepening trade war. The U.S. has imposed a 145% tariff on Chinese goods, prompting a 125% retaliatory tariff from China.
Republicans have criticized the Biden administration for not doing enough to curb China’s imports of Iranian oil, claiming it undermined U.S. sanctions enforcement. Dennis Wilder, a former White House Asia adviser, said Biden had “turned a blind eye” to China’s role in propping up Iran’s economy, out of concern that a full embargo might spike global oil prices.
Meanwhile, the Donald Trump administration is simultaneously engaged in indirect nuclear talks with Iran. Trump’s envoy Steve Witkoff recently met Iranian foreign minister Abbas Araghchi in Oman, with another round of talks scheduled.
China has pushed back against the sanctions. “We firmly oppose the US abuse of unilateral sanctions and ‘long-arm jurisdiction,’” said Liu Pengyu, spokesperson for China’s embassy in Washington, calling it a violation of international trade rules and an infringement on Chinese companies’ rights.
