SHENZHEN: When the United States sanctioned five Chinese refiners accused of trading Iranian oil last month, the move was hardly unusual.

But China’s response was.

For the first time, it invoked its “Blocking Rules”, a 2021 measure formally known as the Rules on Counteracting Unjustified Extraterritorial Application of Foreign Legislation and Other Measures.

In essence, it ordered its citizens and companies not to recognise or comply with US sanctions.

Analysts say the move marks one of Beijing’s clearest attempts yet to shift from diplomatic protest towards active enforcement.

“It signals that China is no longer just drafting technicalities - it is building a systemic legal fortress to shield its industry and supply chain,” Carl Li, an equity partner at Zhong Lun Law Firm in Shanghai, told CNA.

The move comes ahead of a high-stakes meeting between US President Donald Trump and Chinese President Xi Jinping in Beijing next week, underscoring how sanctions are increasingly being wielded as leverage in broader strategic competition.

It also puts companies squarely in the crossfire of competing US and Chinese rules, creating what analysts describe as a compliance catch-22.

FROM RHETORIC TO ACTION

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