Trump Administration Proposes Ban on Chinese Airlines Using Russian Airspace for US Routes Amid Escalating Trade Tensions

The Trump administration announced Thursday a proposal to ban Chinese airlines from flying over Russian airspace on routes to and from the United States, citing unfair competitive advantages these carriers gain through reduced flight times and lower fuel costs.

This move represents another escalation in the ongoing trade tensions between the world's two largest economies, coming on the same day Beijing tightened export controls on rare earth materials critical for various U.S. industries.

U.S. airlines have consistently voiced concerns about Chinese carriers' access to Russian airspace on U.S. routes, as this privilege allows them to significantly decrease flying time, consume less fuel, and operate at lower costs.

Since March 2022, following Russia's invasion of Ukraine, Moscow has prohibited U.S. airlines and many other foreign carriers from utilizing its airspace in retaliation for Washington's ban on Russian flights over American territory. Chinese airlines, however, remained exempt from these restrictions.

This exemption has enabled Chinese carriers to expand their market share compared to non-Chinese airlines on international routes, creating what the U.S. Transportation Department described in its proposed order as an "unfair" situation that "has resulted in substantial adverse competitive effects on U.S. air carriers."

The proposed restrictions would apply to U.S.-issued foreign air carrier permits but would not affect cargo-only flights, according to the Transportation Department.

The decision could impact U.S. flights operated by several major Chinese airlines, including Air China, China Eastern, Xiamen Airlines, and China Southern.

The order did not specifically mention Hong Kong-based Cathay Pacific, which currently flies over Russia on its New York to Hong Kong route according to flight tracking website Flightradar24. Cathay Pacific has not immediately responded to requests 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—have not yet commented on the proposal.

Following the announcement, mainland Chinese-listed shares of the country's three largest airlines experienced slight declines on Friday. Air China dropped 1.3%, China Southern fell 1.8%, and China Eastern decreased 0.3% by midday. These state-owned carriers have been struggling financially since the pandemic, recording five consecutive years of annual losses.

This proposal emerges amid escalating economic tensions between Beijing and Washington across multiple fronts. Boeing is currently negotiating a potential sale of up to 500 jets to China, which would represent a significant breakthrough for the company in the world's second-largest aviation market, where orders have stalled due to U.S.-China trade frictions.

U.S. President Donald Trump and Chinese President Xi Jinping are expected to meet face-to-face in South Korea at the end of October.

The Transportation Department has provided Chinese carriers two days to respond to its proposal and indicated that a final order could take effect as early as November.

In May 2023, the U.S. approved additional flights by Chinese carriers after they agreed not to fly over Russia on new routes. Last year, the Transportation Department authorized Chinese passenger airlines to increase weekly round-trip U.S. flights to 50 but declined to add more flights following pressure from U.S. unions and airlines.

Prior to COVID-19 pandemic restrictions implemented in early 2020, more than 150 weekly round-trip passenger flights were permitted by each side.

Some U.S. carriers have informed the Trump administration that direct East Coast flights to China are not economically viable without access to Russian airspace. In certain instances, airlines must leave seats empty and reduce cargo capacity due to the increased flight duration.