Gas turbines from the U.S., Japan, and Germany are selling like hotcakes—how is China breaking through?

Siemens Energy sold 194 gas turbines in its fiscal year 2025—nearly double the figure for fiscal year 2024—and its total order volume for gas turbines in FY2025 reached 26 GW, a 63% year-on-year increase. Mitsubishi Heavy Industries added 23 new gas turbine orders in the first half of FY2025, a surge of 155.6% year-on-year. The market is booming, yet supply-side capacity cannot be ramped up quickly enough to meet surging demand. This has even led to significantly extended delivery lead times. GE Vernova has already sold out all its production capacity through 2028, with only 10% of its 2029 capacity remaining available for allocation. Mitsubishi Heavy Industries likewise states that placing an order today for a heavy-duty gas turbine typically entails delivery timelines stretching from 2028 to 2030. Global industry leaders are reaping extraordinary profits. Against this backdrop of global market prosperity, China—as both a manufacturing powerhouse and a major energy-demanding economy—is also witnessing sharply rising demand for gas turbines. Yet beneath this surface boom lies an awkward reality: China is not benefiting from this global frenzy; instead, it continues spending heavily to import gas turbines. According to a related report, China imported as many as 674 turbojet engines between January and November 2025 alone. This figure reflects only aviation engine imports; if ground-based power generation and mechanical-drive gas turbines were included, the total number would likely be far higher. Especially in the heavy-duty gas turbine segment, China remains in catch-up mode, relying heavily on imports for high-end models and core components. In the premium market for gas turbines above 300 MW, domestic Chinese units hold less than 10% market penetration. Gas Turbine Market Size in China (2020–2024) and Segment Breakdown China’s path toward gas turbine localization began with cooperation and learning alongside Western enterprises. It was not until 2013 that China seized a once-in-a-lifetime opportunity. That year, Ansaldo—a historic Italian gas turbine manufacturer with over 160 years of heritage—was divested by its parent company Finmeccanica Group (now Leonardo S.p.A.), which sold 84.8% of Ansaldo’s shares to Italy’s state-owned strategic fund FSI amid financial difficulties. Ansaldo ranks fourth globally among gas turbine manufacturers. As early as 1991, it partnered with Siemens to jointly develop F-class gas turbine technology; after the partnership ended, Ansaldo achieved full technological autonomy and successfully mastered H-class gas turbine technology. Despite its strong technical capabilities, Ansaldo struggled commercially due to market saturation in Europe. Shanghai Electric, having just concluded its collaboration with Siemens, possessed deep familiarity with the European market. Its leadership acted swiftly: in 2014, it acquired a 40% stake in Ansaldo, becoming its sole industrial shareholder. The two parties immediately established a joint venture in Shanghai, directly filling critical gaps in China’s capabilities—specifically in high-temperature turbine blades and low-emission combustors. Although core technologies remained under foreign control, it was at this point that Chinese enterprises truly gained mastery over a complete suite of heavy-duty gas turbine technologies. Post-acquisition press release from Ansaldo’s official website In 2015, GE acquired Alstom. Because GE itself manufactured gas turbines, it was compelled under European antitrust regulations to divest Alstom’s gas turbine business.

Just how developed is Italy, really?

Executive Summary: Once a hotspot for Chinese investment in Europe, Italy has gradually shifted its stance toward Chinese capital in recent years. The Meloni government, citing national security and geopolitical concerns, is considering restrictions on Chinese equity stakes in strategically vital Italian companies—particularly in energy and technology sectors. This policy shift reflects tightening U.S.-EU policies toward China and aims to reduce dependence on China. However, it risks undermining Sino-Italian economic cooperation and exemplifies the broader global trend of supply-chain “de-risking.” I. Breaking News: Prime Minister Giorgia Meloni’s government is reportedly considering a strict new plan to limit Chinese ownership stakes in Italy’s most strategically significant companies. According to a Bloomberg report dated August 18, in August the Meloni-led Italian government was weighing a new measure to review and restrict Chinese equity holdings in strategically important Italian private and state-owned enterprises. Key targets include Pirelli (in which ChemChina holds a 37% stake), CDP Reti (in which a subsidiary of State Grid Corporation of China holds 35%), and Ansaldo Energia (in which Shanghai Electric previously held a stake). Although Shanghai Electric has since reduced its shareholding in Ansaldo Energia from 40% to just 0.5%, it remains viewed as a risk. The reported plan would invoke Italy’s “Golden Power” law to compel Chinese shareholders to divest stakes in strategically significant Italian firms—or bar them outright from participating in sensitive decision-making. Enacted in 2012, the Golden Power law empowers the Italian government to scrutinize foreign acquisitions; in 2023, its scope was expanded to cover technology and data sectors. Notably, however, the law had never before been applied retroactively to investments and mergers already approved by regulators. This abrupt policy shift stems from tightening EU-China relations, escalating U.S.-China trade tensions—and, more broadly, mounting geopolitical pressure and rising domestic populist sentiment. Since taking office, Prime Minister Meloni has championed an “Italy First” agenda and strengthened Italy’s alliance with the United States. In 2023, Italy formally withdrew from the Belt and Road Initiative, citing its failure to deliver expected economic benefits and its heightened risk of overdependence on China. At the EU level, foreign investment screening mechanisms have also been reinforced; as a founding EU member, Italy has responded proactively. Bloomberg data shows that since 2024, Italy has rejected five Chinese M&A proposals—including deals involving telecommunications and port infrastructure. The right-wing government led by Prime Minister Giorgia Meloni, which took office in 2022, marks a turning point in Sino-Italian relations. Her administration rapidly recalibrated its China policy and began drafting stringent measures to cap Chinese equity stakes in Italy’s most strategically vital companies. II. During the earlier “honeymoon period” between China and Italy, Chinese enterprises aggressively entered the Italian market as a springboard for broader European investment. Within the long arc of Sino-Italian relations, the 2010s constituted a true “honeymoon era” of economic cooperation. During this period, Chinese enterprises made large-scale forays into the Italian market—acquiring local equity stakes not only to invigorate Italy’s economy but also to use Italy as a strategic platform for deeper investment across Europe. As the world’s second-largest economy, China was then at the peak of its “going global” strategy. Meanwhile, Italy—still grappling with post-Eurozone debt crisis stagnation—desperately needed foreign capital to stimulate growth. Statistics show that from 2010 to 2019, China’s cumulative direct investment (FDI) in Italy exceeded €15 billion, concentrated primarily in infrastructure, manufacturing, and fashion/luxury goods.

Italy's CDP in Talks with Gulf Investors Including Mubadala to Sell Stake in Ansaldo Energia

21 hours ago

Italian state lender CDP is negotiating to sell a 15-35% stake in Ansaldo Energia to Gulf investors like Mubadala. The deal aligns with rising energy demand from AI data centers and potential expansion in the Gulf region.

reuters

2026-09-24

Italy's CDP in Talks with Gulf Investors Including Mubadala to Sell Stake in Ansaldo Energia

Italy's CDP in Talks with Gulf Investors Including Mubadala to Sell Stake in Ansaldo Energia

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