China has successfully test-fired the engines of a new rocket that could launch its first manned mission to the moon, state media has.

The engines of the new Long March C rocket are expected to make it three times more powerful than existing versions of the Long March, Xinhua news agency said on Monday.

The engines, which burn liquid hydrogen and kerosene, are non-polluting and will give a maximum propulsion of 120 tons, said the report, citing engineers at the China Aerospace Science and Technology Corp.

"The new rocket development program is critical for China's future space programs, including a proposed manned mission to the moon," Long Lehao, chief engineer of the Long March C project, was quoted as saying.

"China's existing launch vehicle is not powerful enough to send astronauts to the moon."

Earlier reports said that the rocket would also play a role in placing China's first space station into orbit.

The new rocket is further expected to compete with the United States, Europe and Japan in the commercial satellite launch market.

China hopes to launch a lunar exploration satellite next year as part of a program that aims to place an unmanned vehicle on the moon by 2010, Xinhua said.

China successfully launched astronaut Yang Liwei into orbit in 2003, becoming the third country after the former Soviet Union and the United States to place a man in space.