BEIJING : European aircraft maker Airbus is considering setting up a manufacturing plant in China, building on its relationship with one of the world's leading aviation markets, state media reported on Sunday.

An Airbus aircraft is pictured during construction at the Airbus facility in Finkenwerder near Hamburg July 19, 2005. [Reuters]

The plan was being mulled to commemorate the 20th anniversary of Airbus's entry into China this year, Xinhua news agency said on its website.

Airbus has sold more than 200 planes in China since 1985 and so far this year has received orders for 59 aircraft from five Chinese airlines, accounting for 20 percent of its total orders, Xinhua said.

In addition, over half of the world's 3,700 Airbus aircraft in operation have parts made in China.

"Airbus said its industrial cooperation with China and its technology transfer has entered a new phase this year," said Xinhua.

"It is predicted by 2007, China will grasp the most advanced technology of producing the wings of single-isle aircraft."

Airbus, 80-percent owned by aerospace conglomerate EADS and the rest by British defence contractor BAE Systems, has forecast that in the next two decades it sees potential sales to China of some 1,600 aircraft.

It opened its first office in Beijing in 1990.

The company could not be immediately contacted for comment on the report.