A project to boost Chinese aircraft engine research and development is before the State Council for approval and is expected to be established soon, the China Securities Journal reported on Thursday.

The project will involve an investment of at least 100 billion yuan ($16.1 billion), which will be used for research and development of an engine and related materials.

Two subsidiaries of the Aviation Industry Corporation of China — Shenyang Liming Aero-Engine Corporation Ltd and AVIC Xi'an Aero-Engine Ltd — will lead the project and some research institutions will also participate.

Aircraft engines are seen as having huge potential in China, as air traffic in the country grows at 8 percent a year.

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