China has established a company by the name of China Commercial Aircraft Co. to construct substantial-sized jets. In the process, it has also challenged the authority of the Airbus SAS and Boeing Co. in this sphere for making planes with 150 seats. As per a statement posted on the central government's website, it took an initial investment of 19 billion yuan or $2.7 billion to set up the China Commercial Aircraft Co. Its investors comprise China Aviation Industry Corp. I or AVIC I and AVIC II.

 

It is reported that China wants to construct a 150-seater plane by 2020 for sustaining its burgeoning travel market as well as to vie with Boeing and Airbus overseas. The objective behind setting up China Commercial Aircraft Co. is also to build superior products such as ships, cars and computers for reducing dependence on foreign manufacturers. Remarking on the setting up of this company, Chinese Premier Wen Jiabao said that the country needs to depend on itself to construct big planes' key technologies, components and engines.