China launched a multi-billion jet engine firm in Beijing on Sunday in a bid to enhance its domestic aviation industry.

The firm, which has an operating capital of 50 billion yuan ($7.5 billion), has been named the Aero-Engine Corp. China (AECC).The firm will be situated in Beijing, China. 

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Key investors in the firm are China's cabinet, Beijing Municipal government, the Aviation Industry Corp of China (AVIC), and the Commercial Aircraft Corp of China.

Over the years, the Chinese government has pushed to perfect its goods and services paying great attention to aircraft engines, high-speed rail, and nuclear power.

According to Premier Li Keqiang, engineers at the company should learn from other nations and focus on key technologies for aircraft engines.

President Xi Jinping urged the firm to accelerate independent research, development and manufacturing of aircraft engines, and gas turbines that would help China achieve its goal of becoming an aviation power house.

In his remarks, Xi encouraged indigenous innovation to ensure that the AECC would be a world leader in the aviation sector.

China, the second-largest economy in the world, does not manufacture airline engines. According to Xinhua, the best aircraft in China's army uses an engine manufactured in Russia.

Executives involved in the project, however, say it could take years to be able to develop an engine that can power big commercial jets.

TagsAECC, Li Keqiang, President Xi Jinping, Beijing