The Civil Aviation Administration of China (CAAC) has banned the nation's airlines from complying with the EU's Emissions Trading System (ETS), the latest in a series of protests against the scheme.
It has issued a directive to the airlines stating that they are not allowed to pay charges for carbon emissions to the EU, or hike fees and tariffs on those grounds, unless its approval has been granted, the regulator said in a statement.
The EU ETS breaches the UN's climate change framework and also the International Civil Aviation Organisation's (ICAO) principles and laws on the matter, said CAAC.
The regulator added that it hopes the EU will be open to communication and to work together to find a fair solution, but that it will take the necessary measures to protect the interests of its citizens and businesses.
The China Air Transport Association had said in December 2011 that it will not comply with the EU ETS.
The European Commission, in response, had said that the ETS directive allows for the imposition of an operating ban on any airline which consistently breaks the EU law.