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China XD Electric Co. Ltd and the General Electric (GE) from the United States have formed a strategic alliance to develop integrated power transmission and distribution solutions, the two companies announced on Sunday in Xi'an, Shaanxi Province.

The two companies signed a formal strategic cooperation agreement in 2012, whereby GE agreed to invest 3.383 billion yuan ($552.8 million) for a 15 percent stake in its Chinese partner. The share sale was finished in late August.

The two companies have also established a joint venture to develop power equipment and systems.

Dan Janki, president and CEO of GE digital energy business, said that the cooperation between GE and XD would enable the two sides to stand out from the competition in the market.

The strategic alliance will help XD and GE better use their respective advantages to achieve win-win cooperation, said Zhang Yalin, XD's chairman and general manager.

Thanks to rapidly increasing market demand, the global power transmission and distribution equipment industry has entered a period of sustained growth, which calls for complete sets of equipment solutions.