How independent Chinese oil refiners defy US Iran sanctions

In Shandong province, independent refineries known as "teapots" process a major share of Iran’s sanctioned oil—bought at cut-rate prices and handled through shell companies in Hong Kong. These small-scale plants contribute significantly to local employment and economic growth, despite facing pressure from both Washington and Beijing. While new U.S. sanctions aim to curb sanctioned oil flows, China’s domestic consumption and tax incentives help keep operations afloat. Still, aging facilities, rising import taxes, and dwindling profit margins could spell major shifts for the sector.

This video summary was created by AI from the original DW script. It was edited by a journalist before publication.