China issues first Blocking Rules enforcement order against U.S. Iran sanctions

The Chinese government issued its first enforcement action under the 2021 Blocking Rules on May 2, 2026, ordering Chinese entities not to comply with U.S. sanctions targeting Hengli Petrochemical (Dalian) and four other designated teapot refineries under Executive Orders 13902 and 13846. This was the first time China activated its blocking statute since the rules came into force in 2021, creating a direct legal conflict for multinational companies with operations in both the U.S. and China.