IMMELT: China is changing faster than at any time in the past 25 years

China is being rocked by the biggest market reforms it has seen in two decades, General Electric's Chairman and CEO said Thursday.

Jeff Immelt sat down in CNBC's Squawk Box to chat about General Electric's recent $13.5 billion deal to buy European Altstom's power business, as well as the global economy.

"There is real reform (in China), so people are more hesitant to buy, and there is a lot of change going on - as much change as I have seen in 20 or 25 years in China," Immelt said.

In recent months, China has experienced a stock market rout and a devaluation of the yuan.

"I think it used to be easy for everybody in China because it was a macro story. Everything in China grew," Immelt said. "Now it's more of a micro story."

Immelt said that there is still growth in the aviation sector and in the electricity business, but that mining and construction are going to be "quite tough." Immelt also noted that GE's orders in China are likely to slow to the single digits this year.

Watch the CNBC clip here.