Daijiworld Media Network - Washington

Washington, Oct 10: In a fresh escalation of trade tensions between the United States and China, the Trump administration on Thursday proposed banning Chinese airlines from flying over Russian airspace on routes to and from the U.S. — a move aimed at eliminating what it called an “unfair competitive advantage.”

The U.S. Transportation Department said the current situation allows Chinese carriers to reduce flight time and fuel costs, placing American airlines at a disadvantage. “This practice has resulted in substantial adverse competitive effects on U.S. air carriers,” the department said in its proposed order.

The restriction, if finalized, will apply to passenger flights but not to cargo-only operations. Major Chinese carriers, including Air China, China Eastern, China Southern, and Xiamen Airlines, could be affected by the decision.

The proposal follows Beijing’s decision to tighten controls on rare earth exports — materials critical to several U.S. industries — marking another flashpoint in the ongoing economic rivalry between the two nations.

Since Russia’s invasion of Ukraine in 2022, U.S. airlines have been barred from flying over Russian airspace. However, Chinese airlines were not restricted, giving them shorter and more cost-efficient routes to the U.S.

Shares of China’s top airlines dipped slightly on Friday following the announcement, with Air China, China Southern, and China Eastern all reporting small declines.

Meanwhile, Boeing is reportedly in talks to sell up to 500 jets to China — a potential breakthrough that could help ease tensions ahead of a planned meeting between U.S. President Donald Trump and Chinese President Xi Jinping in South Korea later this month.

Chinese carriers have been given two days to respond to the proposal, and a final order could take effect as early as November, officials said.