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.

The plan was being mulled in the year of the 20th anniversary of Airbus's entry into China.

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.

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

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

Airbus, 80-percent owned by aerospace conglomerate EADS and the rest by UK defense 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.

(China Daily/AFP August 15, 2005)