The Trump administration has proposed a measure that would bar Chinese airlines from flying over Russian airspace on routes between China and the United States, arguing that the current arrangement gives Chinese carriers an unfair competitive edge by shortening flight times and reducing fuel consumption, reports Reuters.
The proposal, announced Thursday, marks another escalation in the ongoing trade tensions between the U.S. and China, two of the world’s largest economies. It comes in the wake of China’s decision to tighten controls on rare earth exports—critical materials for U.S. industries—in a move seen as retaliatory.
U.S. airlines have long criticized the practice of allowing Chinese carriers to use Russian airspace on U.S.-bound routes, claiming it provides them with a significant advantage. The shorter routes not only save time but also reduce fuel consumption, ultimately lowering operating costs for Chinese airlines.
In retaliation for the U.S. banning Russian flights over American airspace in March 2022—following Russia's invasion of Ukraine—Russia has barred U.S. airlines and many other foreign carriers from using its airspace. However, Chinese carriers have continued to benefit from the use of Russian airspace, increasing their market share compared to non-Chinese competitors.
The U.S. Department of Transportation, in its proposed order, stated that the current situation was "unfair and has resulted in substantial adverse competitive effects on U.S. air carriers." The proposal specifically targets U.S.-issued foreign air carrier permits, but notably excludes cargo-only flights from the restriction.
A spokesperson for China’s Foreign Ministry responded to the proposal on Friday, emphasizing that such restrictions would undermine people-to-people exchanges.
The proposal could impact U.S. flights operated by Chinese airlines such as Air China, China Eastern, Xiamen Airlines, and China Southern. However, Hong Kong-based Cathay Pacific, which flies over Russia on its New York to Hong Kong route, was not named in the order. The airline did not immediately respond to inquiries.
Shares of China’s three largest state-owned airlines dropped on Friday, with China Southern leading the decline at 1.3%. Air China and China Eastern fell by 1.26% and 0.95%, respectively. These carriers have faced significant challenges in the wake of the COVID-19 pandemic, reporting five consecutive years of losses.
The proposal comes amid broader economic tensions between the U.S. and China. Boeing is in talks to sell as many as 500 jets to China, a potential breakthrough after years of stalled orders due to the ongoing trade dispute. U.S. President Donald Trump and Chinese President Xi Jinping are also expected to meet in South Korea later this month, adding to the backdrop of escalating tensions.
The U.S. Department of Transportation is giving Chinese airlines two days to respond to the proposed order, with a final decision expected as early as November.
In May 2023, the U.S. approved an increase in flights by Chinese carriers, on the condition that they refrain from using Russian airspace for new routes. However, last year, the Department of Transportation opted not to add more flights after lobbying from U.S. unions and airlines, even though each country had previously allowed more than 150 weekly round-trip flights before the COVID-19 pandemic.
Some U.S. carriers have argued that direct flights from the East Coast to China are not economically viable unless they can use Russian airspace. In some cases, airlines are forced to leave seats unsold and reduce cargo space due to longer flight times.
Bd-pratidin English/ Jisan
