SHANGHAI, July 20 (Reuters) - General Electric Co on Wednesday said it will partner with China's Huawei Technologies Co Ltd to develop its "industrial internet" strategy.

GE wants to connect machines using the internet, producing data that can improve productivity, reduce emissions and lower fuel costs.

It also launched a digital space in Shanghai on Wednesday where it plans to incubate new start-ups and have developers work on new software applications.

(Reporting by Brenda Goh; Editing by Stephen Coates)