China Real Time Report, May 4: "The United States is intensifying efforts to cut off Iran’s most critical financial lifeline—its secret oil trade with China. Washington has targeted Chinese private refineries known as the 'Teapot' refineries, which have absorbed nearly all of Iran’s oil exports."
The report by The Wall Street Journal reveals that after failing to compel Iran’s submission through military means, the U.S. has shifted to a strategy of "financial strangulation," aiming to sever Iran’s oil revenue—a vital economic artery. However, this move is not merely an escalation of sanctions; it marks a direct legal confrontation between China and the U.S. over "long-arm jurisdiction" versus "legal blocking."
The core of America’s latest action lies in precisely wielding the sanction hammer at Chinese private refineries nicknamed the "Teapot" facilities.
Why the "Teapot"? These private refineries operate with remarkable flexibility and are major buyers of Iranian crude. Data shows that over 80% of Iran’s crude oil exports go to China, with the vast majority handled by these "Teapot" refineries. From the U.S. perspective, they represent a lifeline sustaining Iran’s economy.
If these "Teapot" refineries are added to the SDN (Specially Designated Nationals) list, companies will face asset freezes and be banned from using U.S. dollars for settlement—effectively being expelled from the international financial system.
Faced with U.S. sanctions, China did not limit itself to verbal protests but swiftly deployed legal countermeasures—the "blocking order."
This directive is based on domestic laws such as the *Anti-Foreign Sanctions Law of the People's Republic of China*, which explicitly states that no individual or entity within China shall recognize, implement, or comply with relevant U.S. sanctions; otherwise, they will face Chinese legal consequences.
This marks the first time China has invoked the "blocking order" to counter foreign unilateral sanctions, signaling a shift in Sino-U.S. rivalry from case-by-case responses to systemic legal confrontation. It effectively provides a "legal shield" for Chinese enterprises, clearly informing the U.S.: America’s "long-arm jurisdiction" is invalid within China’s territory.
The Wall Street Journal’s reporting captures a powerful backlash against American hegemony in practice. The U.S. attempts to resolve geopolitical issues through financial tools are being met with a robust response from China—armed with legal defenses and grounded in real-world supply chains. The outcome of this contest will not only determine the future of Sino-Iranian oil trade but also profoundly shape the evolution of global trade rules and the monetary system.
Original source: toutiao.com/article/1864261111156812/
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