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Since January 2012, carbon emissions from international aviation have been formally included in the European Union Emission Trading Scheme (EU ETS). Airlines from outside the EU have struggled to find an escape from this arguably unfair decision. China, the United States, Russia, India, and representatives from nineteen other countries signed the Moscow Joint Declaration in February of 2012 to demonstrate opposition to the EU’s unilaterally enacted aviation carbon tax. Originally, the EU had no intention of canceling or suspending its plan to tax the aviation industry’s carbon emissions; however, after international pressure from a number of opposing countries and airlines, the EU decided to suspend the implementation of the aviation portion of the ETS. This article will discuss the legal issues surrounding the EU ETS and its potential impact on China's aviation industry.