Beijing - China on Sunday launched a state-backed aviation company with the task of producing large commercial jets that will eventually challenge global manufacturers Boeing and Airbus. The Commercial Aircraft Corporation of China opened in Shanghai with registered capital of 19 billion yuan (2.7 billion dollars), the official Xinhua news agency said.
The investment has come from the government, China's two state-owned plane manufacturers and other state-owned firms, the agency said.
The company will be headed by Zhang Qingwei, China's minister for science, technology and the defence industry, it said.
A high-level committee of the State Council, or cabinet, approved setting up the company in February 2007 to develop large aircraft with a take-off weight of more than 100 tons and passenger planes with more than 150 seats.
The committee, led by Premier Wen Jiabao, said the programme to develop large commercial jets as soon as possible was a "major strategic decision of the central government and a long-cherished aspiration of the Chinese people."
The State Council also warned that the "complicated project" carried "difficulties and risks," and some analysts have urged the company to seek additional private-sector funding.
Earlier state media reports suggested that China would need at least 10 years to develop the planes.
A Chinese state-run aviation firm has already received more than 180 orders for a regional jet with a capacity of up to 105 passengers, with the first jets expected to be delivered late next year.
