China launches its own jumbo jet company

State media says China has established a company to start making passenger jumbo jets.

The Xinhua News Agency said Sunday that China Commercial Aircraft Co. was established in Shanghai with registered capital of $2.7 billion.

The plan marks a step forward in China´s long-term quest to design and build large aircraft, making it less dependent on Boeing Co. and Europe´s Airbus.

The central government and Shanghai government are among the major shareholders, as are China´s two main aircraft manufacturing and servicing companies, Xinhua said.