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Bombardier Aerospace and China Aviation Industry Corp have signed a strategic cooperation agreement to develop new regional jet models, said Lin Zuoming, president of the Chinese company.

Bombardier, a unit of Bombardier Inc of Canada, will provide technical assistance and US$100 million to help the Chinese firm develop the ARJ21 regional jetliner. Bombardier hopes to increase its share of the growing Chinese market for new commercial jets.

In addition, China Aviation, a government-controlled aerospace supplier, has agreed to invest US$400 million to prepare production facilities in the event Bombardier opts to launch its long-delayed C Series Regional Jet, with the Chinese firm providing large structural parts for these jets.