Yuan Jie, director of the Shanghai Spaceflight Bureau, said Shenzhou V or Divine Vessel V, has reached the "main assembly and main testing stage," the Shanghai-based Liberation Daily reported.

It is estimated the space craft will be launched in the latter half of 2003, "realizing our country's historic breakthrough in manned spaceflight," the newspaper quoted Yuan as saying.

The Shanghai Spaceflight Bureau is part of the central government's space agency and was involved in the research and launching of Shenzhou IV, which blasted off Monday in what is widely seen as the final dress rehearsal for a manned space craft.

Commander Su Shuangning, leading designer of the astronaut system for China's manned space program, said it was fully equipped to carry astronauts, and indicated China was on the verge of joining the United States and the former Soviet Union as the only nations to send humans into space.

Fourteen Chinese astronauts -- picked from thousands of air force pilots -- have undergone training on Shenzhou craft.

The official Xinhua news agency quoted Su saying Monday the astronauts were "absolutely capable of making their maiden voyage to outer space."

The Pentagon in July said a manned spaceflight could happen in 2003, and that Beijing's aim was to build a reusable space craft.

In May, official Chinese media said a longer-term aim was to establish a base on the moon in order to exploit its mineral resources.

Prior to the launching of Shenzhou IV, China carried out three successful launches and landings of Shenzhou spaceships between 1999 and March this year.

A Chinese Aerospace official told AFP that Shenzhou IV, which was launched from the Jiuquan Satellite Launch Center in northwestern Gansu province, should return to Inner Mongolia "within seven days."

SPACE.WIRE