China should unswervingly adhere to self-innovation in research and development of large aircraft, said Chinese Premier Wen Jiabao.

China's first ever jumbo passenger aircraft company was officially inaugurated in Shanghai yesterday.

The company, named Commercial Aircraft Corporation of China Ltd. (CACC), will be responsible for researching, developing, manufacturing and marketing the homegrown large passenger aircraft.

China should by all means conduct overall design and final assembly of large aircraft by itself. The research and production of engines, airborne equipment and material will also demand independent effort, said Wen.

"On one hand, we should notice that China is far behind the world advanced level in hardware, software and talent; on the other hand, China has certain conditions including economic strength, industrial foundation, demand from the market and opening up degree," said Wen.

The country should attach great importance to using world technical resources in an effective way, and introducing and adopting advanced technologies, said Wen.

Wen underscored the importance of mechanism innovation, saying that a good mechanism is a must for the implementation of the large aircraft project. Related sectors should correctly understand and deal with the relationship between mechanism innovation and existing technology, talent and enterprise.

He also called for efforts to optimize and integrate all kinds of technical resources and production factors to establish large aircraft project companies that are in line with modern enterprise mechanisms.

Management and operation innovation should be focused on research and development of products, marketing, after-sale service as well as fund-raising, said Wen.

"Innovation itself can not exist without the environment and condition of a market-oriented economy. The aviation enterprises should actively take part in market competition and deepen mechanism reform," said Wen.