Nov. 17, 2009 (China Knowledge) - General Electric Co, the world's biggest jet-engine maker, and Aviation Industry Corp of China, the country's top aircraft manufacturer, signed a framework agreement on Sunday to set up an avionics joint venture in China, Reuters reported.

The partners plan to launch a 50:50 JV by the middle of 2010, but the proposal still needs regulatory approval, the two companies said in a statement.

The GE-AVIC JV will initially develop equipment for China's home-developed large aircraft C919, which is the country's most ambitious commercial aerospace program.

Commercial Aircraft Corporation of China Ltd launched the large aircraft program in December, 2008 and is expected to deliver to customers in 2016. It will be equipped with at least150 seats, and the engine of C919 will save 16% of fuel.

The JV is expected to become a major supplier for the aviation sector worldwide in the future and be able to compete with Honeywell International Inc, United Technologies Corp's Hamilton Sunstrand and Rockwell Collins Inc. It will sell products in global markets, including the U.S., where 200 jobs will be created mainly at GE's Grand Rapids, Michigan, facilities.