In April, the Navy launched its first domestically built aircraft carrier, a ship powered by conventional means that won't be commissioned until 2020.
Previously, the PLA Navy's most advanced destroyer was the type 052D, a 7,500-tonne vessel.
The launch of the ship marks an important step towards China's dream of having a strong and modern naval force, a member of the Central Military Commission, General Zhang Youxia, was quoted as saying at the launch ceremony.
The new 10,000-ton destroyer is similar in size but not necessarily capabilities as the Arleigh Burke-class guided-missile destroyers.
According to a statement posted on the official website of the Chinese Ministry of Defense, the new warship was "independently developed and manufactured by China". In 2016, according to state media, the Navy commissioned 18 ships, including destroyers, corvettes, and guided-missile frigates.
"The colossal Type 055 is considerably larger and more powerful than India's latest ... destroyers which have still not been commissioned", a report on NDTV said. China is rapidly expanding its military presence in the South China Sea through the construction of military outposts on artificial islands. It will also enable China to build its own version of the Aegis missile-defense system, the expert added. It is equipped with new air defence, anti-missile, anti-ship and anti-submarine weapons, reports Xinhua news agency.
China's naval build-up and it's increasingly assertive stance over disputed territory in the South China Sea can cause discomfort to its neighbours. As per the plan, numerous tests will be carried on the vessel, including equipment operation, berthing and sailing.