Donald Trump’s administration is reportedly seeking to ban Chinese airlines from flying over Russia on routes to and from the United States, arguing that the reduction in flight time that this practice allows puts US airlines at a disadvantage.
The proposal represents another escalation in the trade war between the world’s two largest economies and was announced after Beijing that same day tightened controls on exports of rare earths, crucial for some US industries.
US airlines have long criticized the decision to allow Chinese airlines to use Russian airspace on routes to US territory, as this gives them the advantage of reducing flight time and consuming less fuel, which lowers operating costs.
Russia has banned US airlines and many other foreign companies from flying over its airspace in retaliation for Washington’s ban on Russian flights over the United States in March 2022, after the country invaded Ukraine.
Chinese airlines were not affected by that restriction and have been taking advantage of this advantage to increase their market share compared to non-Chinese airlines on international routes.
The US Department of Transportation said in its proposed order Thursday that the current situation is “unfair and has resulted in substantial adverse competitive effects for US airlines.” The proposal to apply the overflight restriction to foreign air carrier permits issued by the United States would not apply to cargo-only flights, the agency added.
A spokesperson for China’s Foreign Ministry said Friday that the restrictions are not conducive to people-to-people exchanges.
The Transportation Department’s decision could affect some U.S. flights operated by Air China, China Eastern, Xiamen Airlines and China Southern.
The order did not mention Hong Kong-based airline Cathay Pacific, which flies over Russia on its route from New York to Hong Kong, according to flight tracking website Flightradar24. Cathay did not immediately respond to a request for comment.
China’s aviation regulator, the Chinese embassy in Washington and Airlines for America — a major trade group representing American Airlines, Delta Air Lines and United Airlines, all of which fly to China — also did not immediately respond to requests for comment.
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Shares of the country’s three largest airlines listed in mainland China fell on Friday, led by China Southern, which lost 1.3%. Air China and China Eastern fell 1.26% and 0.95%, respectively.
The three state-owned airlines have struggled since the COVID-19 pandemic, posting five consecutive years of annual losses.
Trade tensions
The proposal to ban Chinese airlines from using Russian airspace on routes to the United States comes amid growing tensions between Beijing and Washington over a range of economic issues.
Boeing is in talks to sell up to 500 planes to China, which would represent a major breakthrough for the company in the world’s second-largest aviation market, where orders have stalled due to trade tensions between the two countries.
US President Donald Trump and his Chinese counterpart Xi Jinping are expected to hold a face-to-face meeting in South Korea in late October.
The Transportation Department is giving Chinese shippers two days to respond to its proposal and noted that a final order could take effect as early as November. In May 2023, the United States approved additional flights by Chinese airlines after they agreed not to fly over Russia on new routes.
Last year, the Transportation Department indicated that Chinese passenger airlines could increase weekly round-trip flights to the United States to 50, but opted not to do so after pressure from unions and U.S. airlines.
Before restrictions imposed in early 2020 due to the COVID-19 pandemic, each side allowed more than 150 weekly round-trip passenger flights.
Some U.S. airlines have informed the Trump administration that direct flights from the East Coast to China are not economically viable if they do not fly over Russia. In some cases, airlines are forced to leave some seats empty and reduce loading due to the longer flight duration.
With information from Reuters
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