To build the industrial IoT (Internet of Things) in China, Alibaba and Siemens are collaborating together. The news for the collaboration comes out week after General Electric (GE) declares to continue investing in digital technologies even after shrinking expenditures.

The companies jointly on Monday announced that for customers in mainland China, the MindSphere operating system of the German industrial giant will be available on Alibaba’s cloud-computing platform.

Different industrial machines and factories are connected via the cloud through Siemens MindSphere. This is similar to GE’s Predix that outfits different equipments with the help of data-collecting sensors and further analyzes all the resulting information by making use of industrial software to cut down costs and improve performance.

Joe Kaeser, Siemens CEO and President mentioned in a statement, “The Alibaba pact “is a landmark deal for bringing Industry 4.0 solutions to China as the world’s powerhouse of manufacturing”.

It is also found that after the declaration of the collaboration the shares of Alibaba fell by 0.6% while shares of Siemens rallied 0.9% to 68.20 on the stock market today. Also, to recover the 50-day moving average, GE punched up by 1.7%. Looking at such slight growth, some of the market investors see the signs of a bottom for the GE share and call the stock as a long term buy.

The Alibaba’s and Siemens digital partnership started immediately after both of them signed the memorandum of understanding in Berlin on Monday. Both the companies hope to make MindSphere available on Alibaba’s cloud which is the e-commerce giant’s cloud computing unit by next year.

Nowadays there are many industrial firms which are trying to integrate with the modern cutting edge technologies into their traditional businesses. After doing vast operation struggle it might be right to say that the investment made by these firms in digital technology might benefit them in long run.

Recently, GE and Siemens slashed thousands of jobs as order for power plant equipment squeeze. Siemens till now has spun off or merged its assets in rail, wind and healthcare sector. And now to focus on aviation, power and renewable energy, GE announced last month that the company will shed its oil & gas business as well as healthcare business.

Though, the company now has recapitulated its commitment to digital investments. It is expected that company will make good profits by the end of this year. The company made its official statement and mentioned – it will keep on investing in future too and lead in innovative technologies such as additive manufacturing and digital to lead the next wave of industrial productivity.

In 2017, there were reports that GE might have to agree to sell a Predix stake which were because of the returns that fell short of the company expectations.