Airbus and Boeing, two of the world's leading aircraft manufacturers, are competing fiercely in China three years before the Beijing Olympics.

Six Chinese airline companies agreed last Saturday to buy 60 new Boeing 7E7 Dreamliners at a list price of 7.2 billion dollars, China's biggest purchase ever.

"I hope the first Boeing B-787 aircraft will have China's national flag and carry people worldwide to Beijing in 2008," said Alan Mulally, president and CEO of Boeing Commercial Airplanes.

Also on Saturday, China Southern signed a contract with Airbus on five jumbo aircraft A380 in Paris, the first carrier to announce an order for the new aircraft.

"As the economy develops, China will become one of the biggest commercial aircraft markets in the next few years. The Beijing Olympics will provide a golden chance for the A380's entry," said Laurence Barron, president of Airbus China.

He said China's aviation market was the fastest-growing in the world, and China's potential is second only to the United States.

Boeing aircraft still occupy two thirds of China's aviation market, but Airbus is taking the upper hand in sales.

Experts said like most nations, China is trying to balance its dependence on the two rivals. Airbus plans to establish a research and development center in China, which gives them an advantage. China will also take a 5 percent workshare in Airbus's new A350 program.

Shen Guowei, a senior aviation analyst, said Europe is now replacing the United States as China's biggest trade partner, while the United States remains the main source of China's capital and technology. So from a long-term prospective, the competition between a US and a European manufacturer will be a draw, which will also mean Airbus can reach its goal of taking half of China's market share and ending Boeing's monopoly.

While the type of aircraft is not easy to predict, he said, Boeing's B-787 will probably be a good choice, but that the fast growing tourist flow between China and Europe will also make A380 promising.

China plans to build three main hub airports in Beijing, Shanghai and Guangzhou. The reconstruction of airport compatibility is underway, so the days are numbered for Airbus jumbo aircraft to fly between China and Frankfurt, Paris and London.

Experts also said the competition of Airbus A380 and Boeing B-787 depends partly on the airlines' strategies, traffic in airports and international oil prices. If the price of oil remains 50 US dollars, the high efficiency of Airbus aircraft will be quite attractive.