China's ARJ21-700 regional jet, which entered commercial service in June, uses engines produced by General Electric. The nation has formed a state-owned company to develop China-made jet engines.
China set up a new state-owned aircraft engine maker to help fulfill ambitions to develop homegrown aerospace giants and become a major player in global aviation.
In remarks published Sunday by state media, President Xi Jinping described the creation of Aero Engine Corporation of China, or AECC, as a "strategic move" that would accelerate the development of indigenously made jet engines and thereby boost national prestige and military power.
The new company, which has 50 billion yuan in registered capital and 96,000 employees, will focus on the design, manufacture and testing of aircraft engines. Its investors include the Chinese government and two state-owned firms: Aviation Industry Corporation of China, an aerospace and defense conglomerate, and Commercial Aircraft Corporation of China, which produces passenger jets.
China has struggled to produce advanced jet engines capable of matching foreign rivals, despite significant state funding and decades of effort. Many Chinese military jets use Russian-made engines, while the country's two homegrown passenger-jet designs rely on Western-made engines.
By setting up AECC, Beijing hopes to create a self-sufficient aerospace sector that can serve commercial and military aviation needs with homegrown technology, industry analysts say.
AECC consolidates existing aircraft-engine businesses into a single entity. In March, three listed companies announced that they were due to become part of the new company: AVIC Aviation Engine Corp., Sichuan Chengfa Aero-Science & Technology Co. and AVIC Aero-Engine Controls Co.
China's state-owned aerospace firms date back to the 1950s, when they started building Soviet-designed military and civilian aircraft under license from Moscow.
Chinese engineers have since developed military jet engines, but have yet to master the technology needed to produce powerful turbofan engines suited for commercial use, given the tougher requirements for safety and reliability. While China has designed two passenger jets, both rely on foreign suppliers for their engines and other major components.
The ARJ21 regional jet, a 78-to-90-seater that entered commercial service in June, uses engines produced by General Electric Co., while the single-aisle C919 jetliner-still under development-will be powered by engines made by CFM International, a joint venture between GE and the Snecma engine unit of France's Safran SA.