Summary
- The US said it will sanction Hengli Group, a major Chinese refiner that imports Iranian oil, along with about 40 shipping companies and vessels.
- Chinese regulators told companies in advanced-technology sectors such as artificial intelligence (AI) to reject US capital without government approval.
- A Beijing diplomatic source said next month’s summit will be defined less by efforts to stabilize ties than by a recalibration of power.
Forecast Trend Report by Period
The US and China are escalating tensions again ahead of a leaders’ summit next month. Washington has moved to sanction a major Chinese refiner over Iranian oil imports, while Beijing has effectively told domestic companies in advanced-technology industries not to accept US capital without government approval.
The US Treasury and State departments said on April 24 that they would sanction Hengli Group, a major Chinese refining company that imports oil from Iran, according to foreign media reports compiled on April 26. Treasury said Hengli and other Chinese refiners have been importing sanctioned Iranian crude and providing economic support to Iran, including its military.
Hengli has refining facilities in the northeastern Chinese port city of Dalian with the capacity to process about 400,000 barrels of crude a day. It is regarded as the largest standalone refiner in China.
Treasury also plans to sanction about 40 shipping companies and vessels operating a “shadow fleet” used to transport Iranian oil while evading sanctions.
The sanctions would freeze any US-based assets held by the targeted companies and vessels and block their property interests. They would also apply to entities owned, directly or indirectly, 50% or more by those targets, as well as institutions that engage in transactions involving funds, goods or services with them.
Experts said the move is intended to pressure Iran to accept as many US demands as possible in a second round of ceasefire talks by targeting China, Iran’s biggest oil customer, following a maritime blockade against Tehran. It also gives Washington added leverage over Beijing ahead of President Donald Trump’s planned visit to China in mid-May, they said.
China, meanwhile, has instructed domestic companies in advanced-technology sectors such as artificial intelligence not to bring in US capital without government approval.
Bloomberg reported that Chinese regulators, including the National Development and Reform Commission, recently told several private technology companies to reject US investment when raising funds unless they receive explicit government approval. Companies that received the guidance included Moonshot AI and StepFun.
The measure is aimed at preventing US investors from taking equity stakes in sensitive advanced-technology sectors where national security takes priority.
After Meta, the parent company of Facebook and Instagram, recently acquired Chinese AI company Manus, Chinese authorities tightened oversight, including by banning the company’s executives from leaving the country. Manus had been dubbed a “second DeepSeek” after introducing an AI agent that can independently make plans and carry out complex tasks without human intervention.
The US had earlier stepped up pressure by formally alleging that China stole US AI technology on a large scale. China rejected the accusation as groundless.
A person in Beijing’s diplomatic community said both sides are trying to maximize negotiating leverage through a combination of public pressure and private diplomacy. The summit next month is shaping up less as an effort to stabilize ties than as a recalibration of power.
Kim Eun-jung, Beijing correspondent, Hankyung.com, kej@hankyung.com
Korea Economic Daily
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