The vessel is the first of China's new generation of destroyers. Reports say that the navy commissioned 18 ships, including destroyers, corvettes and guided-missile frigates in 2016.
While China is rapidly producing ships at a much faster pace than the U.S., American capabilities far exceed those of the Chinese.
"It is the symbol of the navy to achieve strategic transformation development", the People's Liberation Army Navy websitesaid with reference to the ship which can carry up to 100 long-range missiles.
The state-run Global Times newspaper said the ship was believed to be the first Type 055 destroyer, which is considered to be a successor class to the smaller 7,500-tonne Type 052D guided missile destroyers.
China marked a milestone with the launch of this Navy destroyer, which the Communist country sees a step towards improving the nation's Navy armament system and building a strong and modern Navy. China is developing three more destroyers which will be commissioned in the Navy soon. The Type 055 naval destroyer launched today by China is among the biggest warships in the world.
The new ship can carry about 120 missiles of various types, including surface-to-air, anti-ship and anti-submarine missiles, as well as long-range cruise missiles, making the destroyer an extremely versatile naval asset capable of engaging virtually any type of target.
China's naval build-up, and it's increasingly assertive stance over disputed territory in the South China, has unnerved its neighbours.
It is through the sea that about $5 trillion in ship-borne trade passes every year.
China will now carry out tests on the destroyer, including equipment operation, berthing and sailing. The Philippines, Vietnam, Malaysia, Taiwan and Brunei also have overlapping claims.
Beijing has also long nurtured resentment against Japan over its past invasion of China, and their dispute over a group of tiny, uninhabited islands in the East China Sea has at times threatened to break out into open confrontation.