Computer technology became an area of tension between China and the United States after a number of run-ins over cyber security. China is now looking to help its domestic industry catch up with imported systems such as Microsoft's Windows and Google's mobile operating system Android.
The operating system would first appear on desktop devices and later extend to smartphone and other mobile devices, Xinhua said, citing Ni Guangnan who heads an official OS development alliance established in March.
Ni's comments were originally reported by the People's Post and Telecommunications News, an official trade paper run by the Ministry of Industry and Information Technology (MIIT).
"We hope to launch a Chinese-made desktop operating system by October supporting app stores," Ni told the trade paper. Some Chinese OS already existed, but there was a large gap between China's technology and that of developed countries, he added.
He said he hoped domestically built software would be able to replace desktop operating systems within one to two years and mobile operating systems within three to five years.