China announced May 2 that Chinese companies should ignore (i.e., it would shield them from, by explicit approvals, subsidies or otherwise) and not comply with U.S. sanctions just placed on five domestic refineries, the largest of them being Hengli Petrochemical with a capacity for 400,000 gpd. So much for Trump White House “adding leverage” just before his scheduled trip to Beijing to meet with Xi. These refineries have all been refining Iranian oil.
Beijing’s Commerce Ministry called the sanctions unlawful, saying they restrict normal trade with countries and lack authorization under international law. “The Chinese government has consistently opposed unilateral sanctions that lack authorization from the United Nations and a basis in international law,” according to the Ministry. China also, the same day, dropped an export ban on refined products going to Southeast Asian countries, the primary one being India. This will provide relief to countries most vulnerable to “demand destruction” right now, again, particularly India.
