Beijing instructs financial institutions to suspend new credit to refiners targeted by Washington, escalating trade tensions.
China has ordered domestic banks to pause new lending to oil refiners under US sanctions, according to officials familiar with the matter. The move targets companies blacklisted by Washington for alleged ties to Iran or other restricted trade activities, tightening financial constraints on the sector.
The directive follows recent US sanctions on Chinese refiners and aligns with Beijing’s broader strategy to counter Western economic pressure. Similar measures were imposed in 2022 amid heightened US-China trade friction, though enforcement has been inconsistent.
No immediate market reaction was reported, but analysts warn the policy could disrupt regional crude flows and refinancing efforts for affected firms.