China axes Airbus orders to bully EU over airline emission tax


China has suspended the purchase of 10 more Airbus long-haul jets, raising the stakes in a row with the EU over an airline emission tax, two people familiar with the matter said on Thursday.

Reuters reports that the move to delay the purchase of the A330 planes brings to $14 billion (8 billion pounds) the value of European aircraft caught up in growing trade tensions over the EU’s Emissions Trading Scheme, which is opposed by China and a group of other trade powers.

China has ordered its airlines not to comply with the EU scheme which came into force for aviation in January.