Donald Trump's administration has proposed an order banning Chinese airlines from flying through Russian airspace on routes to and from the US.
The move is yet another escalation in the trade war between the world's two largest economies after Beijing on Thursday tightened controls for rare earths exports crucial for some US industries.
Russian airspace remains off-limits for many Western airlines and flag-carriers. Russia barred American airlines from using its airspace in retaliation for Washington banning Russian flights over the US in March 2022 after Vladimir Putin's forces invaded Ukraine.
For some routes served by Chinese airlines, flying directly through Russian airspace reduces flight time and saves fuel costs. The US Transportation Department said on Thursday that this puts American carriers at a competitive disadvantage. American Airlines have long criticised the decision to allow Chinese carriers to fly over Russia for this reason.
Chinese airlines have largely continued to operate without costly rerouting, and have been using this advantage to increase market share compared to non-Chinese carriers on international routes.
The US Transportation Department said on Thursday in its proposed order that the current situation was "unfair and has resulted in substantial adverse competitive effects on US air carriers".
It proposes applying the overflight restriction to US-issued foreign air carrier permits, but this would not apply to cargo-only flights.
The Transportation Department's decision could affect some US flights operated by Air China, China Eastern, Xiamen Airlines and China Southern. The order did not name Hong Kong-based airline Cathay Pacific, which overflies Russia on its New York to Hong Kong route, according to flight tracking website Flightradar24.
Some US carriers have told the Trump administration that direct East Coast flights to China are not economically feasible if they do not fly over Russia. In some cases, carriers must leave some seats open and reduce cargo because of the increased flight length.
The announcement comes as Mr Putin admitted that his country’s air defences were responsible for shooting down an Azerbaijan Airlines plane that crashed in Kazakhstan on Christmas Day, killing 38. Mr Putin claims his air defence units were targeting a Ukrainian drone when they accidentally hit the passenger plane as it was preparing to land in Grozny, the regional capital of the Russian republic of Chechnya.
The proposal to ban Chinese airlines from using Russian airspace on US routes comes amid disagreements between Beijing and Washington over a series of economic issues.
Boeing is in talks to sell as many as 500 jets to China, which would represent a major breakthrough for the company in the world's second-largest aviation market, where orders have stalled amid US-China trade tensions.
President Trump and his Chinese counterpart, Xi Jinping, are expected to hold a face-to-face meeting in South Korea at the end of October. The Transportation Department is giving Chinese carriers two days to respond to its proposal and said a final order could be in effect as soon as November.
In 2023, the Joe Biden administration approved additional flights by Chinese carriers after they agreed not to fly over Russia on new routes, Reuters reported.
Last year, the Transportation Department said Chinese passenger airlines could boost weekly round-trip US flights to 50 but opted not to add more flights after pressure from US unions and airlines.
More than 150 weekly round-trip passenger flights were allowed by each side before restrictions were imposed in early 2020 due to the Covid-19 pandemic.
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