On October 9th, the United States government launched the fourth round of sanctions against Iran’s oil network, extending the impact to China’s port infrastructure for the first time. Experts analyze that this move will significantly increase the cost and risk of importing Iranian oil for China, causing a substantial disruption to its energy supply chain.
At the same time, the Chinese government has expanded its export control of rare earths and initiated an antitrust investigation against American technology companies, prompting President Trump to announce a 100% tariff increase on Chinese goods. This comprehensive confrontation across multiple domains including energy, rare earths, technology, and port equipment signifies an unprecedented escalation in the US-China trade war.
The US Treasury Department’s Office of Foreign Assets Control (OFAC) announced on October 9th that sanctions have been imposed on over fifty individuals, entities, and vessels involved in facilitating the sale and transportation of Iranian oil and liquefied petroleum gas. Unlike previous rounds, this round of sanctions targets not only the owners and vessels but also extends to the port infrastructure, significantly increasing precision and deterrence.
The core targets on the sanctions list include Shandong Rizhao Shihua Crude Oil Terminal Co., Ltd. and Shandong Jincheng Petrochemical Group Co., Ltd. The US Treasury Department pointed out that the Lanshan Port crude oil terminal operated by Rizhao Shihua has received over a dozen “shadow fleet” tankers, transporting millions of barrels of Iranian oil. The terminal has an annual processing capacity of around 56 million tons (approximately 1.1 million barrels per day) and is a crucial gateway for China’s crude oil imports.
The Shandong Jincheng Petrochemical Group, as an independent “teapot” refinery, has purchased millions of barrels of Iranian oil since 2023. Treasury Secretary Benson stated, “The Treasury Department is weakening Iran’s cash flow by dismantling key segments of their energy exports.”
Additionally, on the same day, the US State Department imposed sanctions on about 40 entities, individuals, and vessels involved in Iranian oil and petrochemical trade, including Jiangyin Hengyang Chemical Storage Co., Ltd. and its CEO and chairman Gu Wenlong. The State Department noted that the company assisted the sanctioned vessel “Sunrise” to dock and unload Iranian petrochemical products in February 2025.
This marks the fourth round of sanctions by the Trump administration against Chinese refineries that continue to purchase Iranian oil, underscoring the US’s determination and strength in pressuring the Chinese Communist Party in the energy sector.
Regarding the actual impact of this round of sanctions, American economist Davy J. Wong stated in an interview with Dajiyuan that the core feature of this US sanction is shifting the risk from the owners and vessels to the port and port ecology, which is more restrictive than simply rerouting ships.
“Naming specific ports and discharging processes will make carriers, ports, insurers, and agents more cautious,” Wong analyzed. “Queuing at the port, mooring approvals, and unloading scheduling may be hindered, leading to a significant increase in costs and time.”
Regarding alternatives, Wong mentioned that while ports like Qingdao and Ningbo-Zhoushan have the physical capacity to divert some of the cargo from Lanshan, the key issue is whether they are willing to accept high-risk sanctioned flows. He noted that Qingdao Port recently announced stricter scoring and restriction measures for “shadow fleet” vessels.
Wong’s conclusion was that this is not a “cut-off” but rather a significant increase in the “illegitimacy cost” and the “compliance difficulty”. He anticipated fluctuations, repricing, and phased reductions in the influx of Iranian oil to China, but complete disruption is difficult due to arbitrage and the presence of a “shadow network”.
However, researcher Shen Mingshi from the Taiwan Institute for National Defense Studies told Dajiyuan that China’s oil mainly relies on Iran and Russia, not ruling out that all Iranian oil shipments to China may face sanctions. He pointed out that despite the decline in China’s economy leading to lower oil demand compared to the peak in 2003, the US may still impose further sanctions on Iran and Chinese oil in the future.
While the US government announced the fourth round of oil sanctions against China, the Chinese Ministry of Commerce suddenly announced an expansion of its export control on rare earths on October 9th, adding five rare earth elements and materials to the control list. China controls about 70% of the global rare earth ore supply, and rare earths are essential for high-tech industries such as automobiles, defense, and semiconductors.
On October 10th, China announced an antitrust investigation against the American chip giant Qualcomm and imposed port fees on ships owned, operated, built, or flying the American flag.
Regarding China’s sudden escalation in rare earth control, Shen Mingshi believes that the reasons behind it are complex: on one hand, there may be an internal consensus to take a tough stance against the US; on the other hand, it could stem from internal struggles before the Fourth Plenary Session, deliberately provoking or intensifying the conflict with the US; additionally, it may aim to create favorable topics for a potential “Trump-Xi meeting” at the APEC summit.
These series of actions have angered President Trump. On October 10th, Trump posted on the “Truth Social” platform, accusing China of taking an “extremely radical stance” and sending a “highly hostile letter” to the world. He condemned, “This affects all countries, without exception, and is obviously part of a plan they devised years ago. This is unprecedented in international trade and is a moral disgrace in Beijing’s dealings with other countries.”
Trump announced that starting from November 1, 2025, a 100% tariff increase will be imposed on Chinese goods, in addition to the existing tariffs. Simultaneously, export controls will be implemented on all critical software. He stated, “I was planning to meet with Xi Jinping at the APEC summit in South Korea in two weeks, but now it seems unnecessary.”
As the US government announced the tariff increase on China, it simultaneously advanced restriction measures in various sectors, forming a comprehensive counter posture.
In the port equipment sector, the US Trade Representative’s Office announced on October 10th that a 100% tariff will be levied on Chinese-made “shore-to-ship cranes” and “intermodal chassis and their components”, effective November 9th. This measure primarily targets China’s dominant port equipment industry.
In the aerospace sector, Trump hinted on October 10th at the possible restriction of Boeing aircraft and their components exports. He told White House reporters, “We have a lot of chips, one of which is planes. China has many Boeing planes and needs parts and other items.” According to Cirium data, Chinese airlines have ordered at least 222 Boeing aircraft, with 1855 already in operation. If implemented, it will affect the production of Boeing and CFM International’s LEAP engines.
In the electronics sector, Brendan Carr, Chairman of the Federal Communications Commission (FCC), announced on October 10th that the “Clean Cart” initiative has removed millions of prohibited devices, including Huawei and ZTE’s security cameras and smartphones, from major e-commerce platforms.
In the network equipment sector, according to Bloomberg, the US government is considering restricting the market operations of Chinese router manufacturer TP-Link. TP-Link holds about 65% of the US home and small business router market and provides services to federal agencies like the Department of Defense. Officials have determined that their routers were used by hackers supported by the Chinese government in attacks such as the “Voltage Typhoon” and “Saline Typhoon”.
Experts believe that these series of measures indicate that the US is constructing a pressure system against China from various dimensions such as energy, manufacturing, and technology, signaling a new phase of comprehensive confrontation in US-China trade relations.