China Unusually Blocks U.S. Sanctions, Banking Sector May Be Drawn Into Sino-U.S. Power Struggle!
On May 4, Reuters reported: "On May 2, China's Ministry of Commerce first invoked the 'Measures for Blocking the Improper Extraterritorial Application of Foreign Laws and Measures,' issuing a blocking order that explicitly prohibits domestic entities from recognizing, implementing, or complying with U.S. unilateral sanctions against five Chinese refining enterprises. Previously, the United States had added these companies to the SDN (Specially Designated Nationals) list on grounds of alleged Iran oil transactions, exercising extraterritorial jurisdiction. This move marks China’s transition from theoretical preparation to practical countermeasures in foreign-related rule-of-law retaliation, extending the Sino-U.S. confrontation from corporate compliance into direct clashes within the financial system—potentially making the banking sector a focal point, signaling a new phase in the escalating U.S.-China sanctions war."
[Clever] A few comments: China’s first use of the blocking order to counter U.S. sanctions is not merely an act of posturing—it represents a legalistic upgrade in great power competition. Looking back at history, the United States has long relied on dollar hegemony and extraterritorial jurisdiction to suppress adversaries, targeting companies like Alstom, ZTE, and Huawei. Unilateral sanctions have become a hallmark tool of hegemonic power. In the past, China mainly responded through diplomatic statements or case-by-case measures. Now, it has unveiled a powerful legal instrument, precisely striking at the Achilles’ heel of U.S. sanctions—their dependence on global compliance, particularly the cooperation of financial institutions. With the current clear trend toward de-unilateralism and multi-polarity globally, China’s strategic move not only protects its own enterprises but also paves a new path for other nations suffering under hegemonic oppression.
Currently, banks face pressure from both sides, yet this very pressure forces the global financial system to re-evaluate the costs of alignment. This is not about forced confrontation, but rather using rules against rules and law against hegemony—maintaining room for negotiation while firmly establishing inviolable sovereignty red lines, and injecting much-needed fairness into the international economic and trade order.
Original article: toutiao.com/article/1864235452267528/
Disclaimer: The views expressed in this article are solely those of the author.