CHINA plans to invest heavily in a new firm to build regional jets in a bid to meet the country’s growing demand, the China Daily said Monday.

　　China Aviation Industry Corporation I (AVIC I) launched AVIC I Commercial Aircraft Limited in the northwestern city of Xi’an to build and sell a regional jet with initial funding of 5 billion yuan (US$600 million), the paper said.

　　The new company’s ARJ21, or “advanced regional jet for the 21st century,” is set to fly at the end of 2006, China Daily quoted AVIC I Assistant President Tang Xiaoping as saying.

　　(SD-Agencies)