An aviation factory in Shanghai will begin production of the country's first self-designed regional jet this year.
The ARJ21 is expected to make its debut flight in three to four years, local industry sources predicted.
"We will start producing the first batch of components (for ARJ21) in Shanghai this year," China Daily quoted Zhou Jisheng, a spokesman with Shanghai Aviation Industrial (Group) Corp., as saying Wednesday.
The new jet will enter service at the end of 2006 or early 2007, he said.
ARJ21, which stands for "advanced regional jet for the 21st century," carries China's ambitions of taking a slice of the world's fledgling regional jet market.
China will need hundreds of small regional jets of up to 100 seats to serve the burgeoning domestic air travel market over the next two decades, industry sources said.
Around 50 new airports are scheduled for construction over the next five years and feeder traffic from regional jets are forecastto grow 12 percent annually in China over the next decade.
Sources with the company revealed the general design of the newjet will be finalized by the end of next month.
Approved by the State Council, China Aviation Industry Corporation I (CAIC I) has set aside five billion yuan (602 million US dollars) for a pre-study of the jet.