Air China Cargo, a new JV company between Air China, Beijing Capital International Airport and Hong Kong CITIC Pacific, was set up with RMB 3.5 billion (US$421 million) in capital.
Air China holds a 51% stake, CITIC Pacific 25% and Capital Airport 24%.
The new company has a network covering most Chinese provincial capitals and major cities as wells as 36 cities in 27 other countries and regions.
Germany's Lufthansa Cargo, the world's largest international air freight carrier, and Cathay Pacific Airways both have plans to increase capacity in the region to take advantage of an export boom led by China.
Boeing predicts air cargo traffic in China will grow by 10.3% annually in the next 20 years.