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China Soothes Airbus Fears

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The Chinese government says the country's airlines are free to choose the airliners they need despite suggestions by Airbus that they might be discouraged from buying the European products. Last week Airbus said it was afraid the burgeoning Chinese market would shun its products to protest the European Union's new carbon tax on foreign carriers serving Europe. China is one of 27 countries, including the U.S. and Canada, who have loudly protested the tax. But China's government says there's no mix of politics and business in this case.

Bloomberg reported that Li Jiaxiang, China's director of the Civil Aviation Administration, says the government won't retaliate for the tax by forcing airlines to buy Boeing and other manufacturers. "The purchase of airplanes is a business activity by airlines, in which the government doesn't intervene," Li said. "The government respects the companies' choices, which are made based on their own needs."

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