The Trump administration announced on Thursday a proposal to ban Chinese airlines from flying over Russian airspace on routes to and from the United States, arguing that the practice gives them a competitive edge over US carriers that remain barred from Russian skies.

The US Department of Transportation (DOT) said in its proposed order that the current arrangement is “unfair and has resulted in substantial adverse competitive effects on U.S. air carriers.”

The restriction, if enacted, would apply to foreign air carrier permits issued by the US government, though it would exclude cargo-only flights. Chinese carriers have been given two days to respond, with the department noting that a final order could take effect as early as November.

Washington targets China's competitive advantage

The proposed measure comes after US airlines repeatedly criticized Chinese carriers for taking advantage of shorter, cheaper routes across Russian territory, routes that have been closed to most Western airlines since the crisis in Ukraine erupted in 2022.

In response to Washington’s ban on Russian flights over the US, Moscow barred US and other Western carriers from using its airspace, forcing them to operate longer, fuel-intensive routes. Chinese airlines, however, continued to fly through Russian skies, reducing costs and flight times on US–China routes.

The DOT indirectly acknowledged in its proposal that Washington’s own policies have disrupted the balance of competition in global transport. It noted that Russian restrictions have “distorted competition,” enabling Chinese carriers to expand their market share and profitability, while US airlines continue to face longer routes, higher operating costs, and reduced competitiveness.

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Airlines and market reaction

The new rule could affect Air China, China Eastern, China Southern, and Xiamen Airlines, which operate passenger services between the US and mainland China. Cathay Pacific, the Hong Kong-based carrier that also flies over Russia on its New York–Hong Kong route, was not named in the US order.

China’s aviation regulator, the Chinese embassy in Washington, and Airlines for America, the trade group representing American Airlines, Delta, and United, have not yet commented on the proposal.

Following the announcement, shares in China’s three largest airlines fell modestly on Friday, with China Southern down 1.3%, Air China down 1.26%, and China Eastern down 0.95%. The carriers, all state-owned, have struggled financially since the COVID-19 pandemic, recording five consecutive years of losses.

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Growing economic friction

The move marks yet another escalation in the US–China trade war, which has recently expanded beyond tariffs into aviation and maritime transportation sectors. The ban was announced just hours after Beijing tightened export controls on rare earth minerals, vital for US industries such as defense, electronics, and renewable energy manufacturing.

US President Donald Trump and Chinese President Xi Jinping are expected to meet in South Korea at the end of October, where trade, aviation, and technology issues are expected to dominate discussions.

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