The partnership will provide customers with solutions to build and upgrade their electrical infrastructure in a bid to meet the growing electricity demand.
XD chairman of the board Zhang Yalin said XD and GE have complementary product lines.
"Our partnership is a good match that aligns with industry trends to provide the customer with world-class end-to-end transmission and distribution solutions," Yalin said.
GE’s Digital Energy business president and CEO Bob Gilligan said this is the beginning of an important relationship between two companies with complementary product lines and commitments to technology.
"Together, GE and XD Electric will become one of the global leaders in comprehensive T&D technology solutions."
The partnership will see the integration of GE’s grid automation and service capabilities with the high and ultra-high voltage T&D equipments of XD Electric.
As part of the partnership, the two companies will also form a joint venture to offer localized grid automation solutions to customers in China.
GE’s representative will appointed to the XD board of directors, and the US firm will purchase of 15% equity stake in the Chinese firm, under the agreement.
The partnership is expected to start operations in the final quarter this year, subject to regulatory approvals.
GE hired Citigroup as the financial advisor for this transaction.
