China is a beneficiary of US sanctions, as it is now buying Iranian oil at a discount. Grajewski pointed to Beijing’s “long-established,” methods of support to aid the shadow oil trade, including selling Iran ship components. Earlier this month, China made this plain, announcing it would block US sanctions on five of its smaller, private “teapot” refineries, which are the primary recipients of Iranian crude. Among them, the Hengli refinery was described by the US treasury as “one of Tehran’s most valued customers,” a key player netting Tehran billions of dollars by buying oil from the Iranian military. China’s financial regulator last week advised banks to suspend new loans to the five sanctioned refineries, in a nod to Washington – but it declined to shut down trade.
