China rail merger forges industrial giant second only to GE

Beijing

CHINA is forging the country's answer to General Electric (GE), combining two state-owned railroad equipment makers to create the world's second-largest industrial company. And the giant isn't planning to stay at home.

The merger of CSR Corp and China CNR Corp is now complete, producing a nearly US$130-billion behemoth called CRRC Corp with economies of scale that will allow China to compete even more aggressively for overseas rail deals.

China is using its state-owned rail firms not just to win lucrative contracts but to project political influence abroad. CRRC will dwarf competitors like Germany's Siemens AG and France's Alstom SA as it targets emerging markets in Africa, Latin America and South-east Asia - often with sales pitches from Premier Li Keqiang - while biddin…