Germany's MTU Aero Engines is to assess the possibility of establishing domestic aircraft engine activity in China, through a joint study with AVIC Commercial Aircraft Engine Company.
MTU, which recently opened a Shanghai office, has signed a co-operation memorandum with the Chinese firm.
"The study aims to evaluate what structure a local engine company should adopt to be viable and what technologies will be needed for emerging engines to be successful in the Chinese market," says MTU.
AVIC Commercial Aircraft Engine Company is intended to be a powerplant supplier to Chinese airframer Comac. "There will be a 'win-win' future, if the two parties conduct a good co-operation," says the engine firm's chairman, Zuoming Lin.
MTU chief Egon Behle says the German company is planning to "further solidify and enhance" its position in the Chinese engine industry.
It already has a presence in China through its overhaul joint venture with China Southern Airlines, MTU Maintenance Zhuhai.