China has announced that it will not comply with fresh US sanctions imposed on five companies accused of purchasing Iranian crude oil, escalating tensions between Beijing and Washington over energy trade and international sanctions policy.

In a statement released on Saturday, China’s Ministry of Commerce said the affected measures would “not be recognised, implemented, or complied with,” reinforcing Beijing’s long-standing opposition to unilateral sanctions imposed without United Nations approval.

The statement comes after the United States expanded sanctions targeting entities linked to Iranian oil exports, part of its broader effort to cut off revenue streams to Tehran. Iranian crude is widely exported to China, with much of it processed through independent refineries commonly referred to as “teapots,” which depend on discounted supplies.

According to the Chinese ministry, the US actions “improperly prohibit or restrict Chinese enterprises from conducting normal economic, trade and related activities with third countries,” adding that they violate international law and established norms governing international relations.

The sanctions specifically affect several refineries and chemical firms, including Shandong Jincheng Petrochemical Group, Shandong Shouguang Luqing Petrochemical, Shandong Shengxing Chemical, Hengli Petrochemical (Dalian) Refinery, and Hebei Xinhai Chemical Group.

Separately, Washington on Friday announced additional sanctions against another Chinese company, Qingdao Haiye Oil Terminal Co., Ltd., accusing it of importing “tens of millions of barrels” of Iranian crude oil, which allegedly generated billions of dollars in revenue for Iran. The company was not included in China’s latest response.

The latest developments come amid continued diplomatic tension between the United States and Iran, with no lasting resolution to the conflict that escalated following US-Israeli strikes on Iran earlier in the year.

The situation adds further strain to US-China relations, especially as US President Donald Trump is expected to visit China later this month for talks with President Xi Jinping.