China has established a company to start making passenger jumbo jets, Chinese state media reported Sunday

The Xinhua News Agency said 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.