China plans to build its own jumbojets

The Associated Press is reporting that China plans to set up its own company to make passenger jumbo jets, making it less dependent on Boeing Co. and Europe’s Airbus. 

China’s two main aircraft manufacturing and servicing companies were discussing cooperation plans for the project, AP said the official Xinhua News Agency said Thursday.
 
The Shanghai government, aviation companies, and other state-owned companies will invest in the project, Xinhua said, citing Jin Xingming, director of the aviation administration of Shanghai.
 
The companies involved are China Aviation Industry Corporation I, and China Aviation Industry Corporation II, which were split off from state-owned China Aviation Industry Corp. in 1999.
 
The plan marks a step forward in China’s long-term quest to design and build large aircraft.
 
Premier Wen Jiabao referred to the plans in a speech to the national legislature on Wednesday.
 
Airbus has forecast that China’s domestic market would increase fivefold by 2026. Airbus and Chicago-based rival Boeing dominate the market for commercial airplanes carrying 100 or more people.