China's State Council has "in principle" approved a plan to design and make large airplanes based on its own technology, the Cabinet said in a statement posted on the government portal Sunday.

The decision was made by a meeting of the Cabinet's standing committee held on Feb 26.

Chaired by Premier Wen Jiabao, the meeting also approved a plan to establish a stockholding company to build large airplanes, which is expected to start operation "as soon as possible", the statement said, without giving further details.

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