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.

Officials say 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.

"We will try to find a path along which we can make independent innovation in conducting fundamental researches ... making breakthroughs in key technologies and producing strategic aircraft engines. In the meantime, we hope to help upgrade our country's science and technology," said Liu Tingyi, President of Chinese Aeronautical Establishment.