Aviation talks on flights between China and USA hit a stumbling block

A standoff now exists between China and the USA with regard to any ease on flight limits between the two nations. Currently the USA are refusing to accept terms offered by the Chinese for fear of being offered uncompetitive time slots, leaving the prime slots for Chinese airlines. The Chinese are now accusing the USA of dragging its heels.
Part of the problem lies with the fact that Chinese airports are operating virtually at capacity, while military restrictions on flight paths compounds the issue, so what some refer to as a roadblock is appearing in negotiations between the two countries. Exploratory talks, which had been unreported, were held in Washington in May. China offered to allow more flights to and from Beijing, Shanghai and Guangzhou while also lowering caps for a number of other domestic cities, according to US officials. These were the first talks in four years between the two countries, though they ended with the US refusing to continue with formal negotiations until the Chinese adjust their current plans to retain the best slots for their own airlines. Washington has encouraged China to follow guidelines from IATA to accommodate carriers despite problems being experienced over congestion.
Current agreements limit Chinese carriers to 180 round-trip flights per week, while US passenger carriers are allotted 160 weekly round-trip flights between the United States and three of China’s largest cities. According to aviation data and analytics company OAG, airlines are already closing in on these limitations with the four largest Chinese airlines having an average scheduled 148 round-trip flights per week from July-September this year. Their US rivals have hit an average of 128 weekly round-trips.
US airlines are more in favor of an ‘open skies’ agreement as this would permit partnering airlines to request immunity from antitrust law. Of course any joint ventures with Chinese carriers would then have the potential to push out smaller competitors and increase profits on trans-Pacific routes.
It should be noted that while United has informed investors of its interest in a Chinese joint venture as and when an ‘open skies’ agreement is in place, Delta has already announced plans to buy a 3.55% percent stake in China Eastern Airlines for US$450m, making it the first US airline to become part owner of a Chinese carrier, while also gaining an ‘observer’s’ seat on its board.