Watch out General Electric, Pratt & Whitney and Rolls Royce. The Chinese have decided to start making aircraft engines.

The BBC reports here that a new company has been formed with the assistance of the Chinese government in order to target the global aircraft engine manufacturing market.

The company has been named Aero-Engine Group of China and has $7.5bn of initial capital invested, including the backing of the government for whom this is an important strategic investment.

The Chinese government’s overhaul of state-owned enterprises to push Chinese products and services up the value chain has prioritised aircraft engines, high-speed rail and nuclear power as areas in which it wants China to excel in global markets.