An official in charge of China's shipbuilding sector denied Thursday the country is building aircraft carrier in Shanghai.

Zhang Guangqin, vice-minister of the Commission of Science Technology and Industry for National Defense (CSTIN), made the remarks at a press conference when asked to confirm a report that China has built aircraft carrier in Shanghai.

Zhang said, "I don't know from where you got the news. However, I, as a leader in charge of shipping building sector, know nothing about it."

"I can say it clearly that there's no such thing at all," he said.

He told the press that China adheres to taking the way of peaceful development and pursues independent foreign policy of peace and defensive national defense policy. China has a vast maritime space and its navy has the responsibility to safeguard the nation's maritime security, sovereignty and rights.

"As to building aircraft carrier or not, related governmental department will take all factors in consideration," he said.

China's shipbuilding industry is a sector building both civilian and military ships. Zhang said China will renew its navy's arms equipment and use new type of battle ships.

He said China will also improve the level of informationization and precision of long-distance striking.

China has been the world's third biggest shipbuilding nation for the past consecutive years with its output growing by an annual average 26 percent.

China is expected to build ships totaling more than 10 million dead weight tonnage (dwt) this year while in 2004 the figure was 8.8 million dwt. About 70 percent to 80 percent of ships made in China were exported.

Zhang said among the orders that Chinese shipbuilding companies hold, no more than ten percent are for military use, which is a relatively small proportion.

(Xinhua News Agency June 17, 2005)