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Swiss Chinese Law Association — Geneva

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Legal Observatory / Trade and Customs

Legal Update ChinaCross-Border Status unclear

MOFCOM Opposes US Act Authorizing Secondary Tariffs on Third-Country Energy Imports

MOFCOM issued a statement opposing the U.S. 'Lindsey O. Graham Sanctioning Russia and Iran Act of 2026' and its authorization of secondary tariffs of up to 100% on third-country energy trade.

What Changed

  • The U.S. signed into law the 'Lindsey O. Graham Sanctioning Russia and Iran Act of 2026', introducing secondary tariffs of up to 100% on third countries importing Russian oil or gas.
  • China's Ministry of Commerce publicly opposed the U.S. secondary sanctions, maintaining that normal trade cooperation must be free from external coercion.
  • MOFCOM announced that China reserves the right to adopt all necessary measures to protect national sovereignty and the rights of Chinese businesses.

On September 18, Eastern Standard Time, the United States signed the “Lindsey O. Graham Sanctioning Russia and Iran Act of 2026” into law. The U.S. statute comprehensively tightens sanctions on Russia, extends existing sanctions on Iran, and explicitly authorizes secondary tariffs of up to 100% on third countries that import Russian oil or natural gas. In response to comments indicating that China could be targeted by these tariffs, a spokesperson for China's Ministry of Commerce (MOFCOM) issued official remarks on September 19.

MOFCOM stated that China consistently opposes unilateral sanctions that lack a United Nations mandate and have no basis in international law. The spokesperson explicitly rejected the imposition of secondary sanction measures on third countries under the pretext of their trade dealings with third parties. According to MOFCOM, China engages in normal economic and trade cooperation with other nations on the basis of equality and mutual benefit. The spokesperson emphasized that such cooperation does not target any third party and must be free from external disruption or coercion.

MOFCOM stated that it will closely monitor the subsequent implementation steps taken by the United States. The ministry affirmed that China reserves the right to take all necessary measures to firmly safeguard its national sovereignty, development interests, and the legitimate rights and interests of Chinese companies. Finally, MOFCOM expressed hope that the United States will maintain bilateral economic and trade stability through dialogue and consultation, thereby contributing to the world trade order and global supply chain security.

Who May Be Affected

Third-country companies and importers dealing in Russian oil and natural gas, as well as businesses participating in cross-border energy supply chains involving China and the United States.

Cross-Border Context

Connects U.S. trade and sanctions legislation directly to Chinese energy trade interests and global trade order stability.

What to check next

  • Monitor U.S. executive branch implementation directives or regulations concerning secondary tariffs under the Act.
  • Track subsequent regulatory or countermeasures published by China's Ministry of Commerce or other relevant state organs.

This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.

Prepared automatically with AI assistance from the official sources linked on this page. Translations and explanations do not replace the official text.

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