Kina nekter landets flyselskaper å bli med i EU`s ETS

ETS: Emissions Trading Scheme.

BEIJING (Reuters) - China on Monday barred its airlines from joining an EU scheme that could charge for carbon emissions from flights in and out of Europe, escalating a global trade row over the taxing of foreign carriers.

The hardening of the dispute, which comes a week before Chinese and EU leaders hold a summit, could eventually subject Chinese airlines to fines or prohibitions on use of EU airports.

It also comes as euro zone countries look to China, with its huge foreign exchange reserves, to help ease a severe debt crisis.
Chinese airlines were prohibited from participating in the EU Emissions Trading Scheme ETS.L without government approval, the central government's State Council, or cabinet, said on its website (www.gov.cn).