Europe’s Heatwave Crisis Is Fueling an Unprecedented Chinese AC Boom

Chinese AC Exports Hit a Record $3.76 Billion

Official Chinese customs data shows that air conditioner exports to EU countries reached $3.76 billion in the first half of 2026, a 43.2% year-on-year increase and the highest figure ever recorded for the period . Chinese brands' market share in Europe jumped from 27% in 2023 to 41% in the first half of 2026, making China the largest source of air conditioner supply on the continent for the first time .

Exports of portable air conditioners from China to Western Europe surged more than 70% year-on-year in the first five months of 2026 alone . During the same period, Chinese AC exports to France, the Netherlands, and Belgium more than doubled, while Spain, Portugal, and Germany saw strong double-digit growth .

Midea, Gree, and Haier Are Running Full Speed

Major Chinese manufacturers are working around the clock to meet demand. Midea told media that its plant in Shunde, Guangdong, is operating 24/7 to produce PortaSplit units, with products rushed to Europe via China-Europe freight trains . Midea reported first-half air conditioner sales in Western Europe rose more than 70% from a year earlier, with sales in France, Spain, Germany, and the UK all posting strong increases . In some European e-commerce channels, Midea's PortaSplit sold out completely; second-hand prices reportedly exceeded the cost of new units .

Gree Electric saw sales in France, Italy, and Spain grow by more than 40% year-on-year . Alibaba's international retail platform recorded triple-digit growth for air conditioners and fans across its overseas sites, with a Midea model selling out of its German warehouse inventory within days of its June debut . Haier, TCL, and other major Chinese brands are also benefiting directly from the demand surge .

Indian Manufacturers Eye the Market but Face a Cost Gap

Indian AC makers are watching Europe closely. The Times of India reported that Indian manufacturers are gearing up to enter the European market, encouraged by surging demand, but face stiff competition from Chinese and South Korean brands that enjoy a 15–18% cost advantage . Voltas, India's largest AC maker, told Reuters it expects double-digit revenue growth in its room air conditioner segment this summer, but its focus remains on domestic demand . Industry observers note that Indian exports account for less than 1% of the global AC market, and Indian products are typically about 15% more expensive than comparable Chinese units . Large-scale Indian exports to Europe are unlikely before 2027, sources say .

The EU–China Trade Dilemma

The timing of the heatwave creates a political headache for Brussels. Europe ran a record trade deficit with China of $83 billion in the first quarter of 2026, and European officials have been pushing to narrow that gap by reducing reliance on Chinese imports . But Europeans are now buying Chinese air conditioners at an unprecedented rate, complicating the EU's efforts to address the trade imbalance .

As CNBC reported, the bloc's worst-ever heatwave is driving demand for Chinese-made cooling units just as EU and Chinese leaders meet to discuss trade frictions . One European official described the widening trade gap as "not sustainable." But for consumers sweltering in 40°C heat, the immediate priority is cooling—regardless of the trade policy implications.

What This Means Going Forward

The available evidence confirms a deadly, record-breaking heat event alongside a dramatic surge in Chinese AC sales . What remains less clear is whether this is a temporary spike or the start of a permanent shift. Europe's low AC penetration rate—around 20%—suggests significant structural room for growth . If extreme summers become the new normal as climate models project, structural demand for cooling could rise substantially.

For now, Chinese manufacturers are clearly benefiting commercially from the immediate gap, with brands like Midea, Gree, and Haier seeing major sales growth across Western Europe. The EU policy trade-off—between reducing dependence on Chinese goods and protecting public health during extreme heat—remains an unresolved tension that will likely grow as temperatures continue to rise.