Cessna plans Chinese joint venture Cessna, the world's biggest maker of business jets by volume, plans to launch a joint venture in China that will ratchet up competition in the country's booming corporate aviation sector. China has become crucial for the world's leading business jet manufacturers from Gulfstream to Embraer as demand in developed markets has fallen sharply. The US-based Cessna on Friday signed an agreement with state-owned Aviation Industry Corporation of China that could lead to the two companies manufacturing and developing business jets together. It would be the widest-ranging partnership between foreign and Chinese aviation companies, which until now have been largely confined to sourcing parts and aircraft assembly. Makers of private planes had long talked about the vast potential of the Chinese market, but a series of bottlenecks from military-controlled airspace to inadequate infrastructure previously held them back. Now, with the government relaxing regulations and new airports opening by the month, the bottlenecks are clearing and sales are surging. "China recognises general aviation offers the foundation to support its national air transportation needs for the future," said Scott Ernest, Cessna president. The number of business jets operating in China was on track to more than double last year to 116 from 56 in 2010, according to the country's civil aviation authority. A series of corporate decisions over the past year have also underscored China's importance to the global business jet industry. Embraer, the Brazilian aerospace company, signed an agreement with AVIC to establish a production line for its Legacy jet in China. While Gulfstream, the US-based business aircraft maker, opened its first China sales office in December, with its president, Larry Flynn, saying that the company had become "heavily dependent on China." And the Asian Business Aviation Conference and Exhibition, the region's premiere trade show, decided to move this year to Shanghai from Hong Kong. Set to open on Tuesday, it has reported that exhibition spaces sold out long ago because of "an unprecedented level of exhibitor interest." The surge in Chinese business jet orders follows a dramatic easing of rules governing private aircraft. Just five years ago, owners faced a cumbersome seven-day process for permission to fly. Same-day approval is now possible for planes registered in China, according to Herman Chai, Gulfstream's vice-president of sales for East Asia. Despite the fast growth, Chinese demand remains capped by rules that prevent state-owned companies - the giants of the economy - from buying corporate jets. That leaves private businesses and aircraft leasing companies as the main buyers. The Cessna deal is expected to lead to a joint venture with AVIC Aviation Techniques and the government of Chengdu, capital of the south-western Sichuan Province. They aim to manufacture two midsize jet models - the Citation Latitude and the Citation Sovereign - in Chengdu for sale within China. Cessna also said that it might work with its Chinese partners to jointly develop a new business jet model for the global market. Although foreign aircraft manufacturers source many parts in China and use the country for some assembly, joint development of a plane from scratch would be a first.