China has begun final assembly of its first home-made commercial jet, which when completed at the end of this year will bring the nation closer to its ambition of becoming an aerospace power.

Built by the China Aviation Industry Corp, the country's biggest military aircraft maker, Beijing unveiled the regional airliner at a ceremony in its home plant in Shanghai on March 30.

"The ARJ-21 will come off the production line by December and start flight trials in March 2008," said an official with builders Shanghai Aircraft Manufacturing Factory.

The small passenger plane that seats 70 to 90, is expected to enter the commercial market in the third quarter of 2009, according to previous state press reports.

Since launching the project in December 2003, the wholly state-run aviation group has received 71 orders for the ARJ-21, all from domestic airlines. Production capacity is expected to be about 50 planes a year.

Beijing recently announced plans to build a large passenger aircraft that could eventually take on the world's two dominant commercial jet makers Boeing and Airbus.

China has repeatedly stated it wants to lessen its reliance on Boeing of the United States and Europe's Airbus by building its own planes.

Nevertheless about 40 percent of the AJR-21's parts are made by foreign manufacturers, such as General Electric, Honeywell and Parker Hannifin. China is to form a new company to focus on research and development and is looking for foreign allies.