China bars its airlines from EU tax plans

The Chinese government might soon have a trade war at hand having passed orders banning its country’s airlines from complying with a European Union charge on carbon emissions. This move has come soon after the Chinese Airlines refused to pay EU carbon tax.

The Chinese and European leaders are slated to meet at a summit to be held in Beijing in a week’s time.  Also it is notable that just a few days back, the Chinese premier Wen Jiabo, had said that China was willing to extend financial support to Europe to climb out of its debts puddle.

The official news agency Xinhua carried an item from the Civil Aviation Administration of China in which the Chinese airlines had been asked not to join the EU emission trading scheme or charge customers extra on account of it without the prior approval of the government.

The EU’s carbon scheme has been in effect since January 1, 2012 yet the airlines with routes in Europe have not yet been charged, though they have been duly notified. EU will fine those who fail to comply whereas persistent offenders might just be banned from EU airports.

EU believes that its carbon trading scheme is an important measure in the direction of environment protection whereas the Chinese Civil Aviation Administration has said, “China hopes that Europe will directly address our concerns, in light of the overall situation of global climate change, the sustainable development of international aviation and Chinese-European relations.”  It has also urged the EU to ensure a practical and constructive attitude to come up with a solution that is acceptable to both sides.

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