China 'blocks Airbus plane deals' over carbon tax

China has blocked purchases of Airbus planes by Chinese firms in reaction to a disputed European carbon tax, the head of Airbus's parent company, EADS, has said.

EADS chief executive Louis Gallois says Airbus is being subjected to "retaliation measures" by China.

The EU imposed a carbon tax on airlines which took effect on 1 January.

China has not commented, and it is not clear whether it is official policy or a negotiating ploy, analysts say.

Jeremy Howell reports.