Formal talks on a new air services agreement between the US and China could start by the middle of this year, said South China Morning Post. An informal meeting was due to take place this month, according to the General Administration of Civil Aviation in China. (CAAC). A source at CAAC said it might allow for a much greater US airlines presence in the Chinese market, even if mainland airlines might benefit less from the reciprocal rights offered in return.
However, the source said that war in Iraq might disrupt possible negotiations.