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Midea Denies Blocking Service Partners From Working with Xiaomi as Competition Heats Up

Published: Nov. 22, 2025  3:24 a.m.  GMT+8
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China’s air conditioner sales plunged in October, down 23.8% year-on-year.
China’s air conditioner sales plunged in October, down 23.8% year-on-year.

Chinese home appliance giant Midea Group on Friday denied reports that it bars its after-sales service providers from working with rival brands such as Xiaomi or Gree, amid growing speculation over intensifying competition in China’s air conditioning market.

In a written statement, Midea’s board secretary office said the company “has never enforced exclusive cooperation policies” and remains committed to “user-first service principles.” A Beijing-based Midea after-sales service provider also told Caixin it had received no such directive and currently works only with Midea due to equipment compatibility rather than exclusivity.

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  • Midea denied enforcing exclusive service contracts, refuting reports it bars after-sales providers from serving rivals like Xiaomi or Gree.
  • Xiaomi rapidly rose to third in China’s air conditioner sales and opened a large Wuhan factory; it plans further expansion in home appliances.
  • China’s air conditioner market faces declining sales, with a 23.8% YoY drop in October; analysts expect a 10% market decline in 2026.
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Who’s Who
Midea Group
Midea Group is a Chinese home appliance giant. They recently denied claims of barring after-sales service providers from working with rival brands. Midea asserts it has "never enforced exclusive cooperation policies" and focuses on "user-first service principles." They are mentioned as one of the top air conditioner sellers in China, alongside Gree.
Xiaomi
Xiaomi, a Chinese company, is rapidly expanding in the home appliance market, especially air conditioners. They are now the third-largest seller in China, behind Midea and Gree. Xiaomi recently opened a smart appliance factory in Wuhan, signifying a shift to in-house manufacturing. The company aims to be a top home appliance brand by 2030, leveraging its software and ecosystem integration as a competitive edge.
Gree
Gree is a major player in China's air conditioning market, leading in sales alongside Midea. Traditionally, Gree, like Midea, has maintained extensive national service networks vital for customer satisfaction. Their long-standing presence and established service infrastructure contrast with newer entrants like Xiaomi.
Beijing Runto Technology Co. Ltd.
Beijing Runto Technology Co. Ltd. is a market research firm. An analyst from this company, Liu Chuang, stated that Xiaomi now ranks third in air conditioner sales in China, following Midea and Gree.
All View Cloud (AVC)
All View Cloud (AVC) is a market tracker. Data from AVC indicates a significant decline in air conditioner sales in October, with a 23.8% year-on-year drop overall and offline sales falling over 42%. They project a further approximately 10% decline in both sales volume and revenue for China's air conditioner market in 2026.
AI generated, for reference only
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