China is pouring a ton of money to correct its inability to make powerful engines suitable for its stealth fighter jets with the recent launch of state-owned Aero Engine Corporation of China (AECC).
AECC is capitalized at $7.5 billion and is being funded by China's State Council and the Beijing government. Chinese state-run media said the new firm already has 96,000 employees.
AECC combines the resources and employees of a number of state-owned firms, including the Aviation Industrial Corporation of China (AVIC). The major focus of state-owned AVIC is to efficiently develop indigenous military technologies, and to eventually compete with Airbus and Boeing in the civilian airline industry. One of AVIC's products is the Chengdu Pterodactyl-1, a long-range aerial drone.
On the other hand, AECC's grandiose dream is to propel itself into the same league as Rolls Royce and General Electric (makers of the world's best jet engines), while its most immediate aim is to perfect the art of making fighter jet engines powerful enough to allow China's stealth fighters to live up to their promise.
Analysts have long said inferior engines are holding back the development of the underpowered Shenyang J-31 and the Chengdu J-20 fifth generation stealth fighters. The most sophisticated engines powering fourth generation fighters of the People's Liberation Army Air Force are made in Russia.
Chinese President Xi Jinping said establishing the company was a "strategic move" to make China an aviation power and modernize the military, said Chinese state media.
The dearth of modern military jet engines has led China to resort to espionage and hacking to steal secrets from Western countries, especially the United States. Over the past few months, the U.S. has either caught or sentenced to jail Chinese spies attempting to steal advanced American aerospace technology.
Premier Li Keqiang said in written comments that "breakthroughs" in advanced aircraft engines will have great value in strengthening the military and manufacturing ability of the country.