Analysts say there could be a protracted legal dispute, with the EU unlikely to give way.
China has "banned" all airlines in the country from joining the European Union's Emissions Trading Scheme (ETS) aimed at cutting carbon emissions.
The authorities have also barred the airlines from increasing their fares or adding new charges for the scheme.
The ban comes just weeks after the China Air Transport Association said its members did not support the ETS.



The government has admitted breaching European Union pollution legislation, during a High Court battle with environmental campaign group. Lawyers for Environment Secretary Caroline Spelman made the admission following action by ClientEarth.
Climate Energy Ltd, a Witham based carbon reduction agency, has been recognised as the UK’s Fastest Growing Large Cleantech company at the GP Bullhound Cleantech Connect Awards 2011.
At 7am this morning eight women from environmental action group Climate Rush visited the homes of Boris Johnson and Ken Livingstone – the Conservative and Labour London Mayoral candidates. Dressed in scrubs and wearing surgical masks the women invited the two candidates to commit to bringing London’s air quality within legal limits and to join a direct action protest planned for the evening of Wednesday 13th July.
Green campaigners praise David Cameron and his energy secretary, Chris Huhne, for setting bold new carbon emissions cuts. And so they should. The UK now has the toughest legally binding targets in the world, and with them the chance to be a leader in a job-rich green economic future. But that does not mean it has in place the policies to deliver.



