New guidelines a boon for GE

US industrial conglomerate General Electric (GE) has said that it is heartened by the latest municipal government guidelines that are aimed at upgrading the economy through innovation.

The guidelines rolled out by the Shanghai government at the end of May pertain to boosting development in the advanced manufacturing industry, improving the quality and efficiency of utilized foreign investments as well as policies that facilitate multinational companies setting up their regional headquarters in Shanghai.

According to Duan Xiaoying, chief executive officer of GE China, the guidelines will allow the company to better execute its three strategies in China: comprehensive localization, cooperation with global partners and digitalization.

GE China’s healthcare sector is no stranger to localization. The company’s economic magnetic resonance imaging machines are designed solely for the Chinese market and produced in a manufacturing base in Tianjin.

Though these machines were originally targeted at hospitals in lower-tier Chinese cities, they have now made their way into the global market.

With regard to building stronger ties with global partners, Duan noted that the company will be focusing on the projects related to the Belt and Road Initiative in the next few years.

GE China is presently working with industry leaders such as Harbin Electric Corporation, SepcoIII and Sinohydro Corporation on projects in the United Arab Emirates, Pakistan and Zambia.

On the industrial digitalization front, GE China’s focus will be on achieving rapid growth through its new businesses.

According to Duan, the company has been working with China Telecom, ZTE and Huawei in a bid to provide more value to its customers. GE China had also set up a digital foundry in Shanghai in July last year.

The facility, the first of its kind in Asia, is designed to incubate startups, improve collaboration and drive ecosystem growth.

Apart from its R&D center in Shanghai which it opened 15 years ago, GE also has its China headquarters and Asia Pacific operations center in the city. Over the past few years, the company has invested more than $1.2 billion into the city and set up more than 60 labs.