GE invests more in China's energy infrastructure market

Becomes second largest shareholder in Chinese transformer maker.

General Electric has bought a 15% stake in Shaanxi-based China XD Electric Company for US$546 million, making the US firm the second-biggest shareholder in XD.

GE’s strategic alliance with XD is seen as a move to tap into China’s huge electrical infrastructure market.

Both companies agreed to enter into a joint venture for the distribution of GE’s electrical grid solutions to XD’s domestic customers. GE’s advanced management experience could also help Electric’s plans to expand its operations overseas.

XD’s board chairman Zhang Yalin said the transaction would benefit the company in strengthening its traditional market while serving the structural changes in the Chinese energy industry.

XD is among China’s largest contractors for power transmission and distribution engineering. It exports products and technologies to at least 40 nations and regions.