The Chinese did a similar thing with the NZ milk powder industry a few years back. After Chinese farmers put Melamine (a banned chemical) into milk powder to increase its nitrogen content, thereby raising its apparent protein content. Many babies died from drinking contaminated baby milk powder, and the Chinese milk powder industry was devastated for years. New Zealand companies gained huge market share as domestic consumers refused to buy products from their own country.
To rebuild their own industry, the Chinese started putting huge compliance barriers in front of New Zealand milk powder exporters. Only a handful of NZ companies could afford the ridiculous compliance costs. In swept the large Chinese companies and actually bought up New Zealand milk producers, as well as setting up their own massive plants in New Zealand, buying NZ raw products and exporting to China.
Similar to what they're doing by blocking an overseas airline with bull**** excuses like this.