China nears approval of $16 billion domestic jet-engine plan
SHANGHAI (REUTERS) - China's cabinet may soon approve an aircraft engine development programme that will require investment of at least 100 billion yuan (S$19.76 billion), state-run Xinhua news agency quoted unidentified industry sources as saying.
China is determined to reduce its dependency on foreign companies like Boeing Co, EADS-owned Airbus, General Electric Co and Rolls Royce Plc for the country's soaring demand for planes and engines.
So far the domestic aerospace industry has failed to build a reliable, high-performance jet engine to end its dependence on Russian and Western makers for equipping its military and commercial aircraft.
Xinhua on Thursday quoted an unidentified professor at the Beijing University of Aeronautics and Astronautics (BUAA) with knowledge of the project as saying the investment would be used mainly for research on technology, designs and materials related to aircraft engine manufacturing.