China orders companies to "defy U.S. sanctions" for the first time, risking a global financial clash.

China is using a blocking measure to protect domestic companies and prohibits them from accepting US measures against Iranian oil, reflecting a tough stance amidst the power struggle.

On May 4, 2569 at 09.14:XNUMX a.m., Bloomberg News reported that The Chinese government has issued an order for the first time exempting domestic companies from U.S. sanctions. This is a significant step that could put the Chinese banking sector under pressure from competition between the world's two economic superpowers.

The decision, announced on Saturday, is seen as a significant turning point. Previously, while China had criticized U.S. unilateral sanctions, it had generally allowed companies to comply in practice to avoid negative economic impacts and erosion of access to the dollar system.

China's latest measures target five private oil refining companies linked to Iranian oil trade, prohibiting them from accepting, enforcing, or complying with U.S. sanctions within Chinese jurisdiction.

This move relies on a blocking measure that China has had in place since 2564 to protect companies from foreign laws deemed unfair. One of the companies affected is Hengli Petrochemical (Dalian) Refinery Co., which was recently sanctioned by the United States last month.

Chinese Communist Party media Please indicate that this is... "A significant step in bringing legal tools in international affairs from the policy level to practical application."

Analyst I think that This is China's most aggressive move to counter the US's financial power and could lead to renewed tensions ahead of the expected meeting between Donald Trump and Xi Jinping this month.

Chinese Ministry of Commerce specify that The U.S. measures illegally restrict normal trade with third countries and violate international norms, reiterating that China opposes unilateral sanctions that are not recognized by the United Nations.

Banks doing business with these refineries are urgently assessing the impact and seeking clarification from regulatory agencies, particularly regarding the risk of secondary sanctions from the United States.

Analysts from Eurasia Group specify that If the United States extends its measures to Chinese banks or major state-owned enterprises, China is likely to retaliate more strongly.

China remains Iran's largest buyer of oil, with much of it imported indirectly through private refineries before being processed into fuels such as gasoline and diesel. Although Chinese customs data does not officially reflect these transactions, the private sector plays a significant role, accounting for as much as one-third of the country's oil refining capacity, reflecting the importance of energy security to China's strategic goals.

The new measures also allow Chinese companies to claim compensation through domestic courts if they suffer damages from parties complying with U.S. sanctions, whether banks, investors, or domestic and international business partners with businesses in China.

Analysts point out that the use of this measure, the first since 2564, reflects China's lowering of its "threshold" in using legal tools to counter foreign pressure.

refer : www.bloomberg.com

Read news related to All China economic situations can be found here.