Bloomberg News (finance-heavy news)

China Asks Banks to Pause New Loans to US-Sanctioned Refiners

Chinese regulators have instructed major banks to pause issuing new loans to refiners that are subject to United States sanctions, reversing an earlier Ministry of Commerce directive that urged firms to ignore those sanctions. Analysts see two possible explanations: a coordination lapse between government agencies, or a public hard‑line stance masking quiet compliance to avoid triggering secondary sanctions. The banking regulator’s memo specifically targets the four systemically important state banks—Bank of China, China Construction Bank, Agricultural Bank of China and Industrial and Commercial Bank of China. U.S. Treasury Secretary Scott Basson has already sent two warning letters to Chinese banks about secondary‑sanctions exposure, underscoring Washington’s pressure ahead of President Trump’s planned visit. Historically, China has sidestepped sanctions by routing risky transactions through smaller, subsidiary lenders linked to state oil firms such as CNPC. The move signals Beijing’s willingness to temper overt defiance when financial repercussions loom, potentially constraining credit to sanctioned oil refiners and adding another layer of complexity to U.S.–China trade tensions.