General Electric to expand its digital businesses in China

General Electric announced on Wednesday plans to expand its digital businesses in China, reflecting its latest move to leverage China’s growth and the internet to combat a slowdown.

The US corporate giant was a pioneer among foreign businesses with an early foray into mainland China’s industrial internet sector, following a number of unsuccessful attempts by global cyberspace behemoths to secure a foothold in the world’s second-largest economy.

With the launch of a “digital foundry” in Shanghai, GE will fast track more than 10 digital programmes and 40 data analytic applications in China to explore the potential of the Internet of Things.

”It’s right at the starting point,” said John Rice, GE’s vice chairman. “We think that the intersection between the horizontal and vertical is the place we can play and create enormous value.”

GE’s digital projects on the mainland already cover its vertical sectors including aviation, healthcare, power and intelligent environment.

The so-called foundry in Shanghai, with an investment of US$11 million, is the second of its kind outside the US for GE. It provides incubation for local start-ups and serves as a hub for collaboration with customers to develop new applications.