China forms $7.5 billion commercial jet engine company

China has formally launched an aero-engine company in Beijing — to design and build engines for commercial aircraft.

The China Aviation Engine Group is a state-controlled company with a registered capital of 50 billion yuan or around 7-and-a-half billion US dollars. Until this point, the country did not make large commercial jet engines of its own.

The company will focus on design of aero-engines and research of relevant materials. They also say this is a major step for China toward having a complete aerial industrial chain.

It will have 100,000 employees.

China is building the rest of their commercial planes but is about two generations behind with airplane engines.