GE Forms China JV To Make Airplane Electronics

The Associated Press

General Electric's aviation unit is teaming with Aviation Industry Corp. of China to develop and market electronic systems for commercial aircraft customers, including the C919 narrow-body aircraft that China hopes will compete with jets made by industry giants Boeing and Airbus.

The goal is to launch the new China-based company by mid-2010, subject to regulatory approvals. GE Aviation provides jet engines, parts and systems for current commercial and military aircraft, and the AVIC joint venture will offer electronics and services for future commercial aircraft programs. GE has more than 12,000 employees currently based in China.

Financial terms of the partnership weren't disclosed. The signing of the deal came as President Barack Obama landed in Shanghai, kicking off his first trip to China, the world's third-largest economy and the biggest foreign holder of U.S. debt.

The joint venture will create 200 jobs in the U.S., said Lorraine Bolsinger, president and CEO of GE Aviation Systems, in announcing the deal in Beijing on Sunday.

"Our participation has the potential to grow high-tech jobs in the U.S., in addition to creating bilateral industrial cooperation with China," she said. "Our immediate focus is to jointly bid the best, competitive solutions to compete for the COMAC C919 narrow-body aircraft program and then get ready for the next generation of Boeing and Airbus products."