26 Oct: The German industrial giant Siemens plans to merge its rail business with the French train equipment maker Alstom, the companies said Tuesday, creating a behemoth that can compete with the Chinese-state backed China Railway Rolling Stock Corporation. The combined company, Siemens Alstom, would make systems and equipment for two of Europe’s high-speed rail lines, Germany’s ICE and France’s TGV, which can zip between cities at about 185 m.p.h.
“We are creating a new European champion in the rail industry for the long term,” said Joe Kaeser, the chief executive of Siemens. “This will give our customers around the world a more innovative and more competitive portfolio.”
The European rail industry faces pressure from China Railway Rolling Stock Corporation, which has been making an aggressive push to expand around the globe, including in the United States. It is part of China’s larger economic and geopolitical agenda that encourages its technology and infrastructure companies to seek foreign markets, refashioning the global economic order to draw countries and companies more tightly into the country’s orbit.
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