According to Reuters reported that the German Federal Railway Company (BAhn Deutsche, hereinafter referred to as the German Railway) announced on Tuesday, will set up a procurement office in Shanghai, China, to expand its network of international suppliers to china.

This will enable the German Railway suppliers -- Alston, SIEMENS and Bombardier, facing increasing competition pressure. Germany railway annual facility upgrade budget of up to 10 billion euros, of which a large part of the existing three suppliers to carve up.

"We are looking for suppliers around the world," said Guenther Uwe, head of the German railways procurement. We expect Chinese companies will be able to participate in the bidding of the wheel or wheel group purchase contract by 2017." However, he added: "the train procurement may be a more distant choice for Chinese enterprises is a harsh challenge."

Europe and the United States is facing from the China Zhongche train manufacturer Limited by Share Ltd increasingly fierce competition. "We believe that the German railways will initially focus on sourcing components from China," said the Barclays Capital goods analyst in a report. However, this will force the existing suppliers to improve efficiency."