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