The state-owned China Aerospace Science and Technology Corporation (CASC) has announced plans to build a ‘flying train’ that will be able to travel at a speed of nearly 2,500mph.

CASC made the announcement during the unveiling of its plan to develop an inter-city train that can attain a speed of nearly 600mph.

The company noted that it will leverage its expertise in manufacturing rockets, satellites and missiles as part of the new project.

CASC will also associate with 20 domestic and international research institutes in order to develop the proposed 2,500mph trains, reported thesun.co.uk.

"The corporation has built rich experience and accumulated technological know-how through major projects, and it has the capabilities in simulation, modelling and experimentation for large-scale projects."

Commenting on the new plan, the state-owned website The Paper stated: “The corporation has built rich experience and accumulated technological know-how through major projects, and it has the capabilities in simulation, modelling and experimentation for large-scale projects, as well as the world-class design capability for supersonic aircraft, all of which lay the important ground for the super-fast train project.”

CASC deputy general manager Liu Shiquan told media sources that the company’s scientists are planning to develop the new trains that could 'fly on the ground'.

The latest programme is expected to challenge the new Hyperloop One system conceived by Elon Musk, which is currently undergoing testing.

The Hyperloop One system intends to carry passengers at airline speeds using a linear electric motor system on an electromagnetically levitated pod, which will travel through a low-pressure tube.