Commercial Aircraft Corp. of China Ltd. won its first overseas regional-jet order, worth about $750 million, from General Electric Co. as China aims to challenge Boeing Co. and Airbus SAS's dominance of the global plane market.

GE, the world's largest aircraft lessor by number of planes, will sign a contract for up to 25 ARJ21-700s at the Zhuhai air show tomorrow, Zhang Qingwei, Commercial Aircraft Corp.'s chairman, said today in the southern Chinese city. The planes, China's first regional jet, cost about $30 million each, added Chen Jin, the general manager for marketing and sales.

The 70-seater ARJ21 is a key step in China's bid to develop an aerospace industry able to compete in the worldwide aircraft market, which Boeing expects to be worth at least $3.2 trillion over two decades. The deal may also help GE win contracts in China, said Jim Eckes, managing director of industry adviser Indoswiss Aviation. The firm order is for five aircraft, with options for 20 more, said Dan Whitney, a GE spokesman.

"GE is doing business with China," Eckes said. "If they didn't, they probably couldn't sell engines" there.

Fairfield, Connecticut-based General Electric is the world's largest aircraft-engine maker and offers a version of its CF34 model for the Chinese regional jet. Leasing unit GE Commercial Aviation Services, known as the GECAS and a division of finance arm GE Capital, oversees a fleet of more than 1,775 owned and managed planes, according to its Web site.

"This is huge for GE Capital," said GE's Whitney. "It demonstrates our ability and commitment to continue to invest in emerging markets where we see solid growth potential."

Orders Backlog

The GE order will raise Commercial Aircraft Corp.'s total backlog for the ARJ21 to 208, Zhang said. The plane will make its maiden flight before the end of the month, added Xue Li, Commercial Aircraft Corp.'s deputy party secretary.

The plane is scheduled to enter service next year, Miao Wei, vice minister of industry and information, said at an air-show forum. Work on a 100-seat version, a business-jet model and a freighter will start next year, he said.

The ARJ competes with planes from Canada's Bombardier Inc. and Brazilian planemaker Empresa Brasileira de Aeronautica SA.

China intends to make a 150-seater aircraft to compete directly with Boeing and Airbus by 2020. Airlines worldwide may buy 29,400 planes in the 20 years ended 2027, according to Boeing.

The Chinese government would consider accepting overseas investment in its aerospace industry, Miao said today. The country will set up three research and assembly centers to lead the development of larger planes, he added, without elaboration.

Commercial Aircraft Corp. was formed in May with an initial investment of 19 billion yuan ($2.8 billion). The company is backed by various state-controlled entities including Aviation Industry Corp. of China, the State-owned Asset Supervision and Administration Commission and Baosteel Group Corp.

China has also received a total of 136 orders for the MA 60, a propeller-driven commuter plane, Miao said. Xi'an Aircraft Industry Group Co., the maker of the plane, has already delivered 34 of them, he added.