Biden Admin Eyes Increasing Flights to Anti-Competitive China

 The Biden Administration is considering giving favorable treatment in flights to and from China to the ruling Chinese Communist Party. This is at a time when China has been discriminating against U.S. airlines and engaging in anti-competitive practices which impact American commerce in general. It makes no sense to allow such treatment, especially with the Presidential election only a few months away. If this issue bubbles up in the political discourse, it could be a breaking issue which determines which party will occupy the White House in 2025.

Being tough on China is a popular political stance for members of both parties, but this issue is fairly opaque and affects U.S. carriers. Chinese airlines have a competitive advantage because China can fly over Russian airspace while American flights cannot. Permitting China to expand capacity without mutual reciprocity would be rewarding China for maintaining ties with Russia when the Biden Administration has imposed tough sanctions on Russia. Any meaningful sanctions regime should not reward nations doing business as usual with a Russian government at war with an American ally.

Both U.S. commercial airlines and employee unions are urging the Biden Administration to block more flights to the U.S. by Chinese airlines. Reuters reported on April 11, 2024, “in February, the U.S. Transportation Department said Chinese passenger airlines could boost weekly round-trip U.S. flights to 50 starting on March 31, up from the current 35, about a third of pre-pandemic levels.” Reuters cited a letter writing by Airlines for America that includes American, United, Delta and other airlines, in addition to pilots’ unions where they argued that it was unfair because of the "advantage Chinese airlines receive by continuing to access Russian airspace, while U.S. carriers stopped flying through Russian airspace at the start of Russia’s invasion of Ukraine in March 2022." The airlines, pilots, and flight attendants requested Secretary of State Anthony Blinken and Transportation Secretary Buttigieg to stop new flights between the U.S. and China until China guarantees equal access to China’s market for American workers and businesses.

Fairness is important in this negotiation, and under normal circumstances it would be beneficial to increase capacity to the Chinese market. However, the current situation is anything but normal. It would violate the concept of fairness to increase Chinese flights to and from the United States while American airlines and workers lack the same opportunity. Because our government has sanctioned Russia, U.S. based companies are limited in what they can do. In addition, there are many trade related issues which continue to make our relationship with China fraught, including illegal Chinese government subsidies for domestic practice, unfair trade practices and dumping, and strong protectionism of the domestic market from the Chinese government.

A bipartisan coalition in Congress is also taking issue with the potential of the Biden Administration enacting favorable policy to Chinese airlines. Retiring Rep. Mike Gallagher (R-WI) and Rep. Raja Krishnamoorthi (D-IL), the Chair and Ranking Member of the Select Committee on Strategic Competition Between the United States and the Chinese Communist Party, urged the Biden Administration to halt the expansion of Chinese flights. The April 11, 2024 letter to the Biden Administration argues that the results of restrictions arising out of the Covid-19 pandemic resulted in Chinese government discrimination “against U.S. aviation through slot constraints at China’s major airports in Beijing, Shanghai, Guangzhou, and Shenzhen.” The Congressmen argue that after the Covid-19 outbreak, China suspended the bilateral air service agreement with the U.S. government that shut down China’s market to U.S. carriers. That was unfair and the results of those decisions continue to negatively impact American aviation workers, travelers, and airlines today.

While there is increased demand for passenger flights to and from China, expansion should not solely benefit Chinese airlines. A one-sided deal is unfair to American companies and workers. The system worked pretty well back before Covid-19 with a bilateral agreement which was fairer than the current proposal by the Biden Administration to just give away flights to Chinese airlines, especially with the commercial advantages Chinese carriers have in utilizing Russian airspace and a long history of unfair trade practices.

The Biden Administration should not increase Chinese flights to and from the United States until fairness is restored.

Peter Mihalick is former legislative director and counsel to former Reps. Barbara Comstock, Virginia Republican, and Rodney Blum, Iowa Republican

https://www.realclearpolicy.com/articles/2024/04/29/biden_administration_considering_increasing_flights_to_anti-competitive_china_1028153.html