The Wharton e-newsletter analyzes China's goal of producing large airplanes:

With its decision earlier this year to relaunch its large aircraft program, China has signaled its intent to challenge Boeing and Airbus SA’s dominant positions in the global market.

On February 26, China’s Premier Wen Jiabao hosted a meeting of the Standing Committee of the State Council, during which the special working group on the large aircraft program presented its feasibility report. The program was given the green light to proceed and a large aircraft share-holding company was set up by the committee to facilitate the kick-off of the program.

These actions are strong signals that, after the abortion of its first large passenger plane development program -- “Y-10” -- in the 1980s, China has decided to relaunch its plan for R&D on large aircraft.

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