Too Hot to Handle: How Europe's Heatwave Triggered a Chinese AC Boom

Chinese air conditioner factories are running around the clock to meet a surge in European demand, as record heatwaves expose a structural gap in the continent's building stock.

Midea's plant in Shunde, Guangdong, is rushing portable PortaSplit units to Europe via China-Europe freight trains. The company said sales in France, Spain, Germany, and the UK rose more than 70% year-on-year.

Gree and TCL have also ramped up production of similar portable units, according to Chinese financial outlet Yicai.

Europe has historically had low air conditioning penetration. In cities like Paris, strict facade regulations protecting historic buildings prohibit wall drilling for traditional split systems, and professional installation often costs more than the unit itself.

That regulatory barrier is now colliding with extreme heat. Germany, Belgium, and the Netherlands broke June temperature records this past week, with heat-related deaths climbing in Spain and France.

Demand has turned frantic in some markets. One buyer described driving 200 kilometres across the EU to secure the last available unit, paying €100 above the original price.

China exported $27.2 billion worth of air conditioners in 2025, nearly 40% of the global total, according to OEC trade data.

Analysts say the moment reflects a structural mismatch between Europe's protected, historic building stock and a climate it was never designed for, one that portable units can patch but not solve.