The United States on Wednesday imposed fresh sanctions on a Chinese refinery, Shandong Shengxing Chemical Co., Ltd, accusing it of purchasing more than $1 billion worth of Iranian crude oil. The move is part of Washington’s broader campaign to curb Tehran’s illicit oil trade and exert pressure on China over its ties with Iran.
In a statement, the US State Department said, “The United States is today sanctioning Shandong Shengxing Chemical Co., Ltd, a China-based independent ‘teapot’ refinery, for purchasing more than a billion dollars’ worth of Iranian crude oil.”
The sanctions also extend to several other companies and vessels allegedly involved in transporting Iranian oil to China. This is the United States’ second action against an independent China-based teapot refinery since President Donald Trump issued National Security Presidential Memorandum 2 on February 4.
“The President is committed to driving Iran’s illicit oil exports, including to China, to zero,” the statement emphasized. “As long as Iran attempts to generate oil revenues to fund its destabilising activities, the United States will hold both Iran and all its partners in sanctions evasion accountable.”
Broader US Pressure on China: AI Chips Also Targeted
In a parallel development, the US has also tightened restrictions on the export of advanced semiconductor technology to China. According to a report by Radio Free Asia, the US government has informed Nvidia — a global leader in AI chip development — that its H20 chips, designed specifically for the Chinese market, will now require export licenses for shipment.
Nvidia said the notification came on April 9 and confirmed that the restriction would remain in effect indefinitely. This measure builds on Washington’s broader strategy to limit China’s access to cutting-edge technology, especially amid the ongoing trade and geopolitical tensions between the two powers.
