Start with today’s barrage of announcements for all you need to know:
GE has a $9 billion backlog of aviation service work to do in China. This is just the amount of work piled up behind the company in one particular segment of its sprawling enterprise.
Over the next five years, GE expects to pursue $90 billion in Chinese opportunities. Add another $30 billion in Australia and New Zealand and $50 billion in Latin America.
This year alone, the company is comfortable with a target of $10 billion in revenue from Latin America air service. Maybe another $5 billion can come in from biofuel throughout the region and $1 billion from more conventional fuel businesses in Peru alone.
Strategically, this is a matter of one of the world’s greatest corporations hunting the sweetest growth prospects.
They see what they call “growth markets” — the emerging world — accounting for 50% of global GDP by 2025 and want to be drawing 50% of their revenue from these regions by 2022.
As it is, 66% of their $147 billion service backlog last year was outside the United States and 36% of their senior leadership has followed the business across national borders.
On a macro basis, they see a “hard landing” in China as unlikely. Their target is for the Chinese economy to grow at an annualized rate of 7.7% this year, a little ahead of official forecasts.