General Electric Co is buying a 15 percent stake in Shanghai-listed China XD Electric Group for about $535 million, giving the largest US conglomerate a foothold in China's vast electricity infrastructure market and access to XD's technology.

The two companies have also agreed to form a joint venture to distribute GE's electrical grid solutions to XD's local customers. XD will control 59 percent of the joint venture, with GE owning the rest, a source with direct knowledge of the matter told Reuters.

Strapped for growth in their home markets, US and European companies have been continuously trying to access China's vast and rapidly growing economy.