| Business |
| One hot market | |
|
|
![]() An AI-powered smart production line in operation at the Haier Central Air Conditioning interconnected factory in Qingdao, Shandong Province, on November 25, 2025 (XINHUA)
A relentless heatwave sweeping across Europe sent temperatures soaring to dangerous levels in June and early July, driving an unexpected surge in demand for cooling solutions. In response, Chinese air conditioner manufacturers have stepped up to swiftly bridge the supply gap, demonstrating the unmatched agility of their production networks. Europe has not been considered a strong market for air conditioners. According to the International Energy Agency, only about 20 percent of households in the European Union have air conditioning. In Europe, traditional portable air conditioners tend to be bulky and noisy, while split-system units require expensive and time-consuming installation. Many old buildings have architectural structures that make installation difficult, and heritage regulations frequently prohibit drilling into exterior walls, making installation even more challenging. Anticipating these hurdles, Chinese manufacturers were already well-prepared. Midea, for example, has introduced its PortaSplit portable split air conditioner designed specifically for the European market. Its features—quiet operation, drill-free installation, no need for professional installation and a design that is easy to dismantle and move—have helped the product gain a strong foothold among European consumers. Xiong Xueqin, European Regional Director of Midea Air Conditioners, told China Report magazine that shipments of PortaSplit to Europe have surpassed 200,000 units so far this year, more than double last year's total. According to TCL, the company's sales of air conditioners in Western Europe grew by more than 27 percent year on year in the second quarter, with particularly strong performance in the United Kingdom, France and Germany. Gree also announced a total sell-out across its entire European network, with installation appointments fully booked through the end of August. Innovators in China Across the industry, Chinese manufacturers share the view that continuous innovation is essential to succeeding in Europe. Last year, Midea's PortaSplit was named one of Time magazine's Best Inventions of 2025 and has earned a reputation for cleverly addressing the practical challenges of the European market. "The outdoor unit weighs less than 10 kg, making it light enough for an average adult to handle safely," Xiong said. According to Xiong, the outdoor unit is designed to be light and compact so it fits the wide range of door and window styles found across Europe. The flexible pipe connecting the outdoor and indoor units is thin enough to pass through a nearly closed door or window and a purpose-made seal kit helps prevent cold air escaping through the gap. Since placing the compressor indoors can increase noise, the engineering team has refined noise-reduction technologies to ensure quiet operation. Haier has also introduced its premium wall-mounted Expert air conditioning series in Europe, designed for easier installation, maintenance and disassembly. Its modular design can reduce installation time by as much as 50 percent. TCL has tailored its products to meet European consumers' priorities, including simple installation, energy efficiency, low noise, high performance and smart functionality. The company's split-system and light commercial air conditioners now all feature AI-powered energy-saving technology. Xu Deshun, a researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, said he believes the strong performance of Chinese air conditioners in Europe reflects a broader transformation. "The growing popularity of Chinese air conditioners in Europe reflects the trend that 'Made in China' is evolving into 'Created in China.' China's manufacturing sector is increasingly focused on quality and innovation-driven upgrading," Xu said. Resilient supply chains The European market frenzy for Chinese cooling products is also drawing attention to the strength of China's manufacturing ecosystem, particularly its integrated supply chains, delivery efficiency and localized operations. Today, China has one of the world's most comprehensive air conditioner manufacturing chains while also holding a significant share of patents and production capacity for key components such as compressors and motors. Product design, component manufacturing and final assembly can all take place within the same industrial cluster or even the same industrial park. According to Xiong, some of the PortaSplit units shipped by sea in late May to replenish inventory had already arrived at European ports by early July and, at the time of the interview, were awaiting customs clearance. At the same time, factories are working overtime to fulfill urgent orders, with additional shipments being transported via the China-Europe Railway Express. With a transit time of 15 to 25 days, rail transport reduces delivery times by roughly 25 days compared with conventional sea freight. According to TCL, the company is also taking steps to meet surging demand from European consumers. In addition to using the China-Europe Railway Express, it also plans to transport products directly to Europe through cross-border road freight. The company has also shortened its production cycle from the usual 30 to 40 days to as little as 10 days in an effort to ease product shortages across European markets. Chinese customs authorities have also introduced measures to speed up exports. These include streamlined appointment-based customs clearance and on-site inspection procedures. Jiangmen Customs in Jiangmen, Guangdong Province, has established a dedicated declaration channel for cooling appliances to facilitate faster processing. During the first five months of the year, exports of air conditioners through Jiangmen to Europe reached 880 million yuan ($129.6 million), up 15.4 percent from the same period last year. Getting products to Europe, however, is only part of the equation. Chinese companies' localized operations play a critical role in ensuring that products are readily available and delivered to customers quickly. According to TCL, the company's European business operates through a region-specific model. It has established subsidiaries in major markets, including the UK, France, Germany, Spain and Italy, to support localized operations, while relying on an established distributor network to serve Eastern Europe. Xiong added that once PortaSplit units arrive at European ports, Midea's local teams work to expedite customs clearance and distribute the products to retailers as quickly as possible. Chinese companies have also invested heavily in local fulfillment networks for online sales. Joybuy, the European e-commerce platform operated by Chinese e-commerce company JD.com, uses its own local warehouses and the JoyExpress delivery network to offer next-day delivery for large household appliances in some areas. A Paris-based courier for JoyExpress delivered and installed seven air conditioners and cooling fans from 7:30 a.m. to 3 p.m. on his most demanding day, according to media reports. Meeting demand Weather forecasts suggest that Europe could continue to experience unusually high temperatures in the coming months. As a result, local demand for cooling products is expected to remain strong. Zhao Ali, Product Manager for Midea Air Conditioning in Europe, said the company will continue to deepen localized research and development, regularly introducing new products tailored to Western European market needs and developing more customized solutions similar to the PortaSplit. Hisense also announced plans to upgrade its easy-to-install product lines, alongside efforts to improve core performance indicators such as energy efficiency and low-noise operation. Other cooling products such as ice makers, standing fans and wearable neck fans have also seen strong demand across European markets in recent months. A merchant in Yiwu, Zhejiang Province, which is home to the world's largest wholesale market of consumer goods, said demand for ice-making machines on cross-border e-commerce platforms has surged dramatically. "In the first six months of this year, online retail sales of our ice makers in the UK increased tenfold, while sales in Germany and France grew between 3 and 4.6 times," the merchant said on the condition of anonymity, noting that compared with the usual annual growth rate of 8 to 20 percent, this is an unprecedented surge. On July 1, Mao Ning, a spokesperson for China's Ministry of Foreign Affairs, shared a video highlighting the robust overseas sales of Chinese air conditioners with a striking social media commentary: "As relentless heatwaves blanket Europe, Chinese-made ACs are stepping up to save the day and deliver refreshing coolness. For every global problem, China is part of the solution." BR The author is a reporter for China Report, in which this article was originally published Copyedited by G.P. Wilson Comments to lixiaoyang@cicgamericas.com |
|
||||||||||||||||||||||||||||||
|