U.S. to bar Chinese passenger airlines from June 16; restrictions on 33 Chinese firms, institutions take effect June 5

Chinese passenger planes will be suspended from flying to the United States (U.S.) as of June 16, according to an order issued by the Donald Trump administration, in the latest sign of rising tensions between the world’s two largest economies.
The Department of Transportation said the move was a response to the “failure” of China to “permit U.S. carriers to exercise the full extent of their bilateral right to conduct scheduled passenger air services to and from China.”
The U.S. said China had not allowed its carriers to resume flights to the country after pausing the routes because of the coronavirus
U.S.-Chinese relations have soured in recent months amid tensions surrounding the coronavirus pandemic and Beijing’s move to impose new national security legislation for Hong Kong.
The order applies to Air China (601111.SS), China Eastern Airlines Corp, China Southern Airlines Co (600029.SS) and Hainan Airlines Holding Co (600221.SS), as well as smaller Sichuan Airlines Co and Xiamen Airlines Co.
Delta Air Lines (DAL.N) and United Airlines (UAL.O) have asked to resume flights to China this month, even as Chinese carriers have continued U.S. flights during the pandemic.
Delta said in a statement on Wednesday that “we support and appreciate the U.S. government’s actions to enforce our rights and ensure fairness.” United did not immediately respond to a request for comment.
China “remains unable” to say when it will revise its rules “to allow U.S. carriers to reinstate scheduled passenger flights,” a formal order signed by the Transportation Department’s top aviation official Joel Szabat said.
“We will allow Chinese carriers to operate the same number of scheduled passenger flights as the Chinese government allows ours,” the department said in a separate statement.
The Chinese embassy in Washington did not immediately respond to a request for comment.
The Trump administration on May 22 accused China’s government of making it impossible for U.S. airlines to resume service to China and ordered four Chinese carriers to file flight schedules with the U.S. government.
The Chinese carriers are flying no more than one scheduled round-trip flight a week to the United States but also have flown a significant number of additional charter flights, often to help Chinese students return home.
Hainan had planned to fly between New York’s JFK airport and Chongqing starting in July, while other carriers have flights to Los Angeles and New York.
China Eastern wants to resume additional flights later this year to Chicago and San Francisco.
The Trump administration is also cracking down on Chinese passenger airline charter flights and will warn carriers not to expect approvals.
The Transportation Department order said the administration believes Chinese carriers are using charter flights to circumvent China’s limit of one flight per carrier per week to the United States and “further increasing their advantage over U.S. carriers in providing U.S.-China passenger services.”
On January 31, the U.S. government barred from entry most non-U.S. citizens who had been in China within the previous 14 days due to the coronavirus crisis but did not impose any restrictions on Chinese flights.
Major U.S. carriers voluntarily decided to halt all passenger flights to China in February.
Delta and United are flying cargo flights to China.
Delta had requested approval for a daily flight to Shanghai Pudong airport from Detroit and Seattle, while United had asked to fly daily to Shanghai Pudong from San Francisco and Newark airport in New Jersey and between San Francisco and Beijing.
China’s air authority in late March said Chinese airlines could maintain just one weekly passenger flight on one route to any given country and that carriers could fly no more than the number of flights they were flying on March 12, according to the U.S. order.
But because U.S. passenger airlines had stopped all flights by March 12, China “effectively precludes U.S. carriers from reinstating scheduled passenger flights to China,” the Transportation Department said.
Meanwhile, the U.S. Commerce Department said on Wednesday that new restrictions on 33 Chinese firms and institutions would take effect on Friday, June 5.
The agency had announced in May it was adding them to an economic blacklist for helping Beijing spy on its minority Uighur population or because of ties to weapons of mass destruction and China’s military.
The move marked the Trump administration’s latest efforts to crack down on companies whose goods may support Chinese military activities and to punish Beijing for its treatment of Muslim minorities.
The firms and institutions are being added to the U.S. “entity list,” which restricts sales of U.S. goods shipped to them and some more limited items made abroad with U.S. content or technology.
Companies can apply for licenses to make the sales, but they must overcome a presumption of denial.