China Defies US Sanctions with 'Red Line' on Energy Security
The US has raised the stakes in its sanctions game against China, targeting Hengli Petrochemical (Dalian) Refinery Co., one of the country's largest private refiners. The move was aimed at cutting off Iran's oil supply to China, but Beijing has responded by telling its companies to ignore the sanctions.
The US sanctions were imposed on a major oil refiner in China, with Washington repeatedly threatening banks and other firms involved in the sector. This is an unprecedented act of defiance for China, which has long displayed caution when dealing with US restrictions.
Beijing's response demonstrates the importance of private refiners to China's energy security, particularly during a historic supply crisis. Private refiners have been vital in keeping fuel supply coming through, thanks in part to millions of barrels of Iranian crude.