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General Electric (GE) has signed a deal with China Aviation Industry Corp. I (AVIC I) to produce engines together for China's first commercial aircraft built domestically.

The CF34-10A engine will be produced for the ARJ21-700 aircraft, with GE offering the technolical support for AVIC I, China's top aircraft company.

This is the first time a company outside of China has worked together with the production of passenger aircraft in the nation.

AVIC I already has 71 orders for the ARJ21 series as of January 2007, from Chinese domestic airline companies.

Over the next several years AVIC I Commercial Aircraft Co. Ltd. says sales will reach 50 units annually for both domestic and international markets.

I find this interesting because after the problems with some of the Chinese products recently, I was thinking China should bring in GE for Six Sigma quality and bring Wal-Mart (WMT) in to take care of their supply chain problems.