China's first-ever blocking order targets spillover of US sanctions
By MLex Staff ( May 7, 2026, 06:23 GMT | Comment) -- China has activated its blocking mechanism for the first time, ordering companies not to comply with US Iran-related sanctions imposed on five Chinese refiners. The move marks the first public use of China’s 2021 blocking rules. While the order stops short of broader retaliation against US companies or financial institutions, it seeks to curb the commercial spillover and “chilling effect” created by US sanctions pressure on banks, insurers and counterparties.China has formally activated its long-dormant blocking mechanism for the first time, seeking to draw clearer lines around the reach of foreign sanctions and curb the chilling effect surrounding US restrictions on Chinese companies....
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