The United States is rescinding its plan to ban Chinese airlines from flying to the country after Beijing relaxed its rules for foreign carriers. The US still plans to impose some restrictions on Chinese flights.

Infinity Tyres

The dispute begins amid rising tensions between the two economic giants. In recent weeks, the countries have been at loggerheads over the coronavirus pandemic and China’s Hong Kong policies.

The U.S. government had earlier planned to suspend Chinese passenger planes from flying to the country as of June 16, according to an order issued by the Trump administration.

The Department of Transportation said the move was a response to the “failure” of China to “permit U.S. carriers to exercise the full extent of their bilateral right to conduct scheduled passenger air services to and from China.”

The U.S. said China had not allowed its carriers to resume flights to the country after restricting the routes because of the coronavirus.

U.S.-Chinese relations have soured in recent months amid tensions surrounding the coronavirus pandemic and Beijing’s move to impose new national security legislation for Hong Kong.