China hopes to develop its C919 jet to compete with popular single-aisle jets such as the Airbus A320 and Boeing 737.
State media said the plane lifted off the tarmac in Shanghai and flew west about 1,300 kilometers (800 miles) to the city of Yanliang.
The test flight comes on the heels of a state visit by US President Donald Trump during which China signed on to buy 300 Boeing jetliners for USD 37 billion and USD 2.5 billion worth of General Electric jet engines, alongside energy and telecom deals worth a total of USD 253.4 billion.
The jet's development is a key step on the path laid out by Chinese leaders to transform the country from the world's low-cost factory into a creator of profitable technology.