Shanghai Electric Order from India Signals China Export Surge

Analysts said that Shanghai Electric Group Co.’s $10 billion deal to supply coal-fired generators to India’s Reliance Power Ltd. shows Chinese apparatus makers are increasing exports while the domestic market disappears because of government actions to curb pollution.

The share of revenue from exports has almost in two at Shanghai Electric. It is the China’s biggest power-equipment maker by market value, and Harbin Power Equipment Co. as they participate with global rivals goes ahead by General Electric Co.The order of Reliance Power may be the world’s largest for generators, the company controller Anil Ambani, Indian billionaire said this.

Simon Jiang, an analyst at Guotai Junan Securities HK Ltd assumed that Chinese manufacturers are objecting the developing world for orders outside China, such as India, the Middle East and Southeast Asia.They have a real benefit over competitors from the developed world for the reason that their costs are lower. And currently the technology matches that in the West.