BEIJING, China (AFP) — China on Friday announced the first delivery of its new domestically produced passenger jet, with the aircraft expected to make its commercial debut early next year.

Beijing hopes the C919 commercial jetliner will challenge foreign models like the Boeing 737 MAX and the Airbus A320, though most of its parts are sourced from abroad.

The first model of the narrow-body jet, which seats 164 passengers, was formally handed over to China Eastern Airlines during a ceremony at an airport in Shanghai, state media reported.

The move marked "an important milestone" in the journey of China's aircraft industry, state broadcaster CCTV said.

Footage broadcast Friday by CCTV showed the jet bearing the China Eastern insignia standing on a rainswept airfield and gave a glimpse inside the aircraft's cabin.

The state-owned Commercial Aircraft Corp. of China passed the airline a "commemorative key to the world's first C919," CCTV reported.