China – August 22, 2025
The U.S. Department of State has imposed sanctions on two China-based companies, accusing them of facilitating illicit Iranian oil sales and serving as critical hubs for Tehran’s revenue stream. The targeted entities—Qingdao Port Haiye Dongjiakou Oil Products Co. in Shandong Province and Yangshan Shengang International Petroleum Storage and Transportation Co. in Zhejiang Province—are terminal operators that Washington says have imported millions of barrels of Iranian crude on tankers already under U.S. sanctions. This action marks the fourth round of such sanctions specifically targeting Chinese terminal operators and signals a renewed effort by the U.S. to crack down on the “shadow fleet” that helps Iran circumvent international sanctions.
Headline Points
* Targeted Sanctions: The sanctions block all property and interests of the designated companies that are in the United States or under the control of U.S. persons. The U.S. Treasury Department, in a parallel action, also sanctioned a Greek national and a network of companies for their role in moving Iranian oil, primarily to China.
* A Vital Role in Illicit Trade: The U.S. State Department’s statement highlighted that the two sanctioned Chinese terminal operators play a vital role in Iran’s crude oil supply chain. Qingdao Port’s Dongjiakou facility is described as the largest entry point for Iranian crude into China, while Yangshan Shengang is accused of receiving shipments from multiple U.S.-designated vessels.
* Funding “Destabilizing Activities”: Washington asserts that the revenue generated from these illicit oil sales is used by Tehran to fund “destabilizing activities,” including support for terrorist groups and its advanced weapons programs. The sanctions are part of a broader “maximum pressure” campaign to deny the Iranian regime access to these funds.
* Ongoing Trade and U.S. Frustration: The sanctions underscore the U.S.’s growing frustration with the continued flow of Iranian oil to China. Despite previous rounds of sanctions, analysts estimate that clandestine shipments to Chinese ports have provided Iran with billions of dollars in annual revenue, allowing it to maintain its oil exports at near-normal levels.
* Impact on Geopolitical Relations: This latest round of sanctions adds another layer of tension to the complex relationship between the U.S. and China. While not a direct sanction on the Chinese government, the targeting of mainland-based companies could be seen as a strong warning, highlighting the ongoing geopolitical challenges and the struggle to enforce sanctions on a global scale.
