China’s Ministry of Commerce announced on Saturday, May 2, 2026, that the U.S. sanctions against the five Chinese companies restrict their normal economic and commercial activities with third countries and constitute what Beijing described as the “extraterritorial application” of U.S. law, according to Xinhua.
The companies targeted by the sanctions are Hengli Petrochemical (Dalian), Shandong Shouguang Luqing Petrochemical, Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, and Shandong Shengxing Chemical.
The United States has placed the companies under sanctions over what it described as their involvement in oil transactions with Iran, imposing measures including the blocking of assets and a ban on transactions with them.