At least 50% of the components needed for China Aviation Industry Corp I's (AVIC I) regional jet project will be put out to tender to overseas aviation companies, the Oriental Morning Post reported, citing Zhou Jisheng, vice chief engineer of the 85-seat ARJ21 aircraft, China's first contender in the market for regional jets. The tenders include engines and onboard equipment and systems. Jin Lvzhong, a senior advisor to the project, acknowledged that China has to cooperate with large international companies to develop engines and some key systems. But Wu Xingshi, chief engineer of the ARJ21 aircraft, raised concerns that foreign aircraft makers would reduce the quality of components to meet current Chinese capabilities even if paid to produce to Boeing (BA.NY) and Airbus standards. GE already has the contract to provide key engine systems for the ARJ series aircrafts. The ARJ21-700 model also uses steering systems from Honeywell (HON.NY) and a navigation and electronic system from LCI Aviation. Bombardier (BBD.TSE) participated in the design of the ARJ21-900. AVIC I's ARJ 21 series is not yet commercially available. The Shanghai Securities News reported market rumors Thursday that AVIC I may merge with its smaller rival AVIC II.