Brazilian aircraft manufacturer Embraer said it has still not decided whether to close its manufacturing plant in north China.

The company made the announcement after the Estado news agency reported that Embraer will close an aircraft factory in China.

Estado said that China will start its own aircraft production in 2011 and considers Embraer as a competitor.

Embraer said in a statement that the company is negotiating with the Chinese Government and a Chinese partner for the purpose of continuing operations, according to Reuters.

In January 2003 Embraer and Chinese state aircraft manufacturer AVIC established a 51-49 joint venture company in China to make ERJ145 regional jets.