MONTREAL (Reuters) - Bombardier Inc (BBDb.TO: Quote, Profile, Research) said on Thursday it expects to expand its role in China's plane and train markets through joint ventures and other arrangements with Chinese companies.

The company expects to build on its already close relationship with state-owned China Aviation Industry Corp I (AVIC 1).

"Our partnership with AVIC I will continue to expand and these discussions are going on," Pierre Beaudoin, president of Bombardier Aerospace, told analysts during a conference call.

Beaudoin replaces his father Laurent on June 4 as president and chief executive of parent company Bombardier Inc.

Last June, Montreal-based Bombardier agreed to invest $100 million in development of AVIC I's ARJ21-900 jet. The two companies pledged to look at working together on the ARJ21-900 and Bombardier's proposed 110- to 130-seat CSeries airliner.

AVIC 1 would also invest $400 million in the $3.2 billion development program for the CSeries and build its fuselage.

Other business links include AVIC 1 unit Shenyang Aircraft Corp, which has a contract to supply components for Bombardier's Q-Series turboprops and will be a supplier for the CSeries.

On the rail side, Andre Navarri, president of Bombardier Transportation, said the company is considering establishing a joint venture in rail systems signaling in China.

The company, which will have about 4,000 employees in China this year, has three railcar sector joint-ventures in China -- for subway cars, passenger cars and propulsion systems.