China establishes new state-owned aircraft-engine maker

China set up a new state-owned aircraft engine maker to help fulfil ambitions to develop home-grown aerospace giants and become a major player in global aviation. Sunday, president Xi Jinping described the creation of Aero Engine Corp 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 CNY50b (US$7.5b) in registered capital and 96,000 employees, will focus on the design, manufacture and testing of aircraft engines. By setting up AECC, Beijing hopes to create a self-sufficient aerospace sector that can serve commercial and military aviation needs with home-grown technology, industry analysts say. AECC consolidates existing aircraft-engine businesses into a single entity. <br/>