The U.S. House of Representatives is preparing to vote on legislation aimed at combating China’s purchase of Iranian oil in response to Iran’s attacks on Israel. The bill is part of a comprehensive package of measures submitted to address the issue.
The bill, known as the “2023 Iran-China Energy Sanctions Act,” was introduced by Representative Michael Lawler on October 11, 2023. The upcoming vote will expand secondary sanctions on Iran, imposing restrictions on Chinese financial institutions’ agent accounts and direct payment accounts in the United States involved in transactions for purchasing oil or oil products from Iran.
The legislation will cover all transactions between Chinese financial institutions and sanctioned Iranian banks for the purchase of oil and oil products.
Furthermore, the bill requires the U.S. President to determine within 180 days from the date of enactment and annually for the following five years whether any transactions by Chinese financial institutions involve the purchase of oil or oil products from Iran, regardless of the scale, quantity, frequency, or nature of the transactions.
According to the bill’s summary, Iran’s crude oil exports reached a new high in four years, with 1.5 million barrels being exported, 80% of which were shipped to China. Despite the reluctance of large state-owned refineries in China to engage in this trade due to sanction risks, small independent refineries known as “teapots” continue to import Iranian crude oil.
The bill, which received unanimous approval in the House Financial Services Committee with 47 votes in favor and 0 against in November last year, is one of several Iran-related bills to be deliberated on Monday. The House will use an expedited procedure for the vote, typically employed to swiftly pass bipartisan supported legislation.
Responsibility Editor: Li Lin