General Electric (NYSE:GE) has looked to Asia as an engine for growth in its infrastructure business, which is the company's largest division. Management has repeatedly talked about offsetting slowing growth in the U.S. and the EU with increased business in developing nations, with China, the world's most populated country, out in front. Despite its GDP growth, China is still behind many other countries in building large projects to provide energy and transportation.

GE's plans got a blow when its most direct global competitor, Siemens, (NYSE: SI), announced that its business was being hurt because of cutback in spending in China. According to The Wall Street Journal, "Heavy government spending on infrastructure to boost economic growth has the potential to benefit Siemens because its portfolio includes transformers for ultrahigh voltage power lines, control systems for high-speed trains, and oil and gas equipment." But now it sees those orders slowing quickly.

The news has to be a significant blow to GE. As the recession spreads, its entertainment business, NBCU, is likely to be hurt along with its huge medical devices business. Its financial arm is already experiencing trouble due to the credit crisis.

The last hope for rapid earnings growth was the world's continuing need to upgrade infrastructure. It appears that opportunity is walking out the door with the rest of GE's business.

Douglas A. McIntyre is an editor at 247wallst.com.