With Asia experiencing rapid economic expansion, demand in the industrial sector is expected to remain high. Although rapid development in some countries suggests the need for selectivity, on the basis of all considerations, China still remains a viable story.
General Electric’s (NYSE:GE) chairman Jeff Immelt seems to think so. According to AP Immelt expects its company business in China to double by fiscal 2010 to $10 billion a year. He also expects 15% to 20% annual sales growth for GE’s clean-energy technology which will get generated from China’s efforts in improving energy efficiency and clean up its environment.
China’s economy continues to enjoy strong economic growth. Transportation, tourism, financial services and real estate are growing and currently account for more than 38% of the country’s economic activity. Over the last decade, the country’s GDP has grown at approximately 10% per annum since 2003. China’s growth has been led by the strength of its manufacturing and service sectors, which have contributed to a growing middle class seeking both residence and employment in urban areas.
Immelt also said GE should benefit from heavy spending on other infrastructure for fast-expanding Chinese cities.
Clearly, the confluence of a growing middle class and the expanding investment market has created substantial opportunity across the commercial spectrums for many companies, including GE.