China 'halts Airbus deal in carbon row'

China has halted a multibillion-euro aircraft order, placed with Airbus by Hong Kong Airlines, in protest at the European Union's plans to extend carbon dioxide emissions trading to air traffic, it was claimed yesterday.

It is thought the deal was due to have been signed on Tuesday, only for the Chinese to have vetoed any announcement. Airbus and Hong Kong Airlines declined to comment on the order last night.