White goods exports show uptick in 1H25

The Star

3 days ago

BEIJING: China's exports of home appliances grew steadily in the first half of the year, with emerging markets including Latin America, the Middle East and Asean showing an upward trajectory, according to a report by an industry association.
Data from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products show that the cumulative export value of Chinese white goods – which refer to large household appliances like refrigerators, washing machines and air conditioners – stood at US$68.78bil in the first six months, up 6.2% year-on-year (y-o-y).
China's exports of household appliances to Asia rose 8.4% y-o-y to US$26.92bil during the period, while those to the European market increased 9.8% on a yearly basis, the report said.
However, the country's household appliance exports to traditional markets such as North America, Australia and New Zealand declined during the January-June period, affected by rising trade protectionism and volatile tariff policies from the United States.
Exports to the North American market reached US$11.87bil, down 5% compared with the same period last year due to US tariff hikes, the report noted.
Moreover, with scorching temperatures gripping much of the Northern Hemisphere, the export volume of China-made air conditioners came up to nearly 57 million units in the first half.
The figure is expected to exceed 90 million units by the end of this year.
Exports of Chinese home appliance components maintained growth momentum in the first six months, with the export value reaching US$10.9bil, surging 18.6% from a year earlier, the report added.
Zhou Nan, secretary-general of the CCCME's home appliances branch, said the demand for Chinese white goods in emerging markets such as South-East Asia, Africa and the Middle East is growing rapidly, providing new growth momentum for China's household appliance exports.
'Some Middle Eastern countries, such as the United Arab Emirates and Saudi Arabia, have accelerated economic transformation, expecting more Chinese companies to invest and start businesses there, which brings about new development opportunities for Chinese brands,' he said.
Zhou added that in the face of mounting external uncertainties, Chinese home appliance exporters should diversify business layouts and strengthen supply chain resilience while stepping up investment in research and development and technological innovation to make their products more intelligent, green and energy-saving.
Chinese appliance manufacturers are actively adjusting their globalisation strategies to mitigate the risks of over-dependency on too few markets.
Haier Smart Home Co Ltd, a subsidiary of China's largest home appliance manufacturer Haier Group, is stepping up efforts to expand its presence in the Middle East through establishing an industrial park that produces air conditioners, TVs, refrigerators and freezers in Egypt.
The park is expected to accelerate the company's presence and growth in the Middle East and Africa by leveraging its global supply chain to serve consumers in the region.
Li Dongsheng, founder and chairman of Chinese consumer electronics company TCL Technology Group Corp, said, 'We will actively consider increasing industrial centres in Africa and strengthening our business in the Middle East.'
Li said Chinese manufacturers should shift from exporting products to exporting industrial capacity, accelerate the building of global industrial chains and improve localised operations in overseas markets.
Wu Chun, managing partner of Boston Consulting Group Greater China, said Chinese home appliance makers have accumulated years of advantages in production and supply chains, independent innovation capabilities and world-leading expertise in digital technologies.
'These core advantages can enable them to seize emerging opportunities under the new development landscape,' Wu said, highlighting that Chinese enterprises have gradually shifted their strategic focus in their globalisation processes. — China Daily/ANN