Carbon airline tax row escalating

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China has made it very clear it is not going to accept the European Union's airline carbon tax, while the US is looking to introduce laws to prevent US carriers from paying it, Leithen Francis from the Aviation Week Group has told the BBC.

He believes both countries could take retaliatory action.

Even if they do, Europe is likely to hold its ground - to back down now would involve a big loss of face, Mr Francis says.

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