China airlines banned from paying the EU carbon charge following the US, India and others

China has banned its airlines from paying the new European Union carbon charge

The levy applies to all airlines flying to and from EU countries. Companies that do not comply face fines and ultimately could be banned from using EU airports.

The Civil Aviation Administration of China (CAAC) said on Monday that airlines were not allowed to pay the EU charge, increase freight costs or add other fees, according to Xinhua.

The EU's ambassador in Beijing, Markus Ederer, told a press briefing it hoped to resolve the issue through negotiation. Beijing's announcement came one week before a China-EU summit.

Hinting at possible retaliation, Xinhua added: "China will consider adopting necessary measures to protect interests of Chinese individuals and companies, pending the development of the issue."

China, the US, India and others are bitterly opposed to the scheme, leading to fears it could spark a trade war.

Sources:

guardian.co.uk