Air China Limited, the country's flagship carrier, plans to team up with the Beijing municipal government to tap the business jet market, according to a report by local media.

Reportedly, the two sides are likely to sign an agreement soon to form a joint venture that rents jets to businesses.

China's business jet market is in its infancy, with the number of business jets in the country less than 1% than that of the U.S. market. However, it is estimated that the country will need 600 to 1,200 business jets in the next 10 years.