As punishment for continuing its oil transactions with Iran, the United States government placed a sanction on the Chinese company Zhuhai Zhenrong Limited and its chief executive Youmin Li. China immediately slammed the US government for its "bullying" behavior and expressed its opposition to such actions.
The action comes at a very delicate time in the brittle trade relationship between China and the United States. Both countries had recently called a truce in their long-running trade dispute.
Despite temporarily settling its squabble with China, the US has so far escalated tensions with Iran, which it had slapped with strict sanctions to cut off the country's finances from its oil exports.
In a statement during an event in Florida following the decision, US Secretary of State Mike Pompeo mentioned that the sanctions slapped on Zhuhai Zhenrong Limited was a necessary move in its efforts to place "maximum pressure" on Iran.
Pompeo reiterated the US' stand on imposing sanctions on actions against its campaign.
Chinese Foreign Ministry spokeswoman, Hua Chunying, stated at a press briefing in Beijing that the country was opposed to the US' actions. Hua mentioned that there was no basis for the US' wanton decision against the Chinese firm based on US domestic law.
The spokeswoman further explained that the government was condemning the US' actions and it imploring it to reverse its decision. In response to the move, China is apparently prepared to take all necessary measures to protect the rights and interests of Chinese companies and individuals.
As part of the US' sanctions, Zhuhai Zhenrong Limited and its CEO will now be barred from engaging in business and personal activities in the United States. This will include a ban on the company and its CEO from procuring property and engaging in banking activities within the country's jurisdiction. The company's CEO has also been banned from entering the country until the sanctions are lifted.
Zhuhai Zhenrong Limited is one of China's four licensed state importers of oil. The company imports millions of tons of crude oil from various sources, including Iran. In 2018, Zhuhai Zhenrong Limited along with the other three licensed importers shipped more than 29.27 million metric tons of crude from Iran. Zhuhai Zhenrong Limited's imports accounted for 60 percent of the overall oil imports last year.
This is actually not the first time the company has faced such sanctions from the United States. In 2012, the company was barred from receiving financial support from the US Export-Import Bank.
The government also blocked the company from acquiring a US export license. During that time, the company stated that the US sanctions did little to affect its business as it did not engage in any transactions with US firms.
