Recent US restrictions on Iranian oil exports have dealt a major blow to Chinese oil refining giant Sinopec, with analysts saying they are targeting a terminal through which the state-owned company processes about 20% of its crude oil imports.
Points of attention
- This move by the US demonstrates a response to China's tightened control over rare earth exports, indicating a tit-for-tat escalation in trade tensions.
- The inclusion of Rizhao Shihua Crude Oil Terminal in the US Treasury list signifies efforts to further restrict Iran's oil trade with China, highlighting the global ramifications of these sanctions.
The US is increasing pressure on China
The new restrictions announced by the United States on October 9 are increasingly worsening relations between Washington and Beijing.
What is important to understand is that this is happening on the eve of talks between American and Chinese leaders Donald Trump and Xi Jinping, scheduled for October.
In fact, the White House reacted in this way to China's decision to tighten control over the export of rare earths.
According to analysts, this confirms the US plan to continue to restrict Iran's oil trade with its largest customer.
Rizhao Shihua Crude Oil Terminal Co. Ltd, half-owned by Sinopec's logistics arm, was added to the US Treasury list along with tankers carrying Iranian oil and LNG, as well as one independent Chinese refinery.
As the American authorities managed to find out, the Rizhao Shihua terminal in the Lanshan district of the city of Rizhao (Shandong province) was receiving Iranian oil from vessels that are under sanctions.
