GE Focuses on China for Global Expansion
GE is looking to increase its collaboration with China to aid the country's Silk Road initiative. The company plans to enhance the sale of its equipment such as wind turbines and coal plants by partnering with Chinese companies. It also endeavors to supply power infrastructure to growing markets.
Like Us on Facebook
According to The Wall Street Journal, GE expects to capture more than $5 billion worth of orders in the coming decade from the countries involved in One Belt, One Road initiative. This figure shows a five-fold increase in the current business from these countries.
John Rice, vice chairperson of GE global operations, said the company has realized that markets such as China have already evolved.
GE is collaborating with a number of Chinese companies investing in developing countries. The global conglomerate supplies wind turbines to Chinese companies in Kenya, while the Chinese companies in Laos partner with GE for hydropower equipment.
GE offers employment to over 22,000 people in China and runs 34 joint ventures in the country.
The third party collaborations will help GE as Chinese markets are showing signs of cooling.
To make up for the sluggishness in domestic market, GE is looking to expand its tie-ups with Chinese companies to other evolving markets. Meanwhile, to boost its presence in China, GE recently organized an industry summit for Chinese suppliers.
It is worth noting that that GE is not the only western company ever keen of partnering with Chinese counterparts and use Chinese influence for propagating their global businesses. Other companies, such as Caterpillar and DHL Group, also seek to capitalize the opportunities generated by One Belt, One Road initiative. The plan was launched in 2013 under Chinese President Xi Jinping's leadership.