SHANGHAI — According to a report released by Frost & Sullivan, China’s room air conditioning market experienced booming increases from 2009-2011, boasting a compound annual growth rate of double digits. The report noted that this increase has been credited to the Chinese government’s consumer electronics subsidy program, which is set to expire in 2012.
The Chinese government promulgated three different policies — “Government Subsidy to Energy-Saving Household Appliance,” “Household Appliance Trade-in,” and “Home Appliance Subsidy Program for Rural Areas” — to stimulate the purchase of energy-efficient home appliances. Many manufacturers benefited from these policies over the last three years, and the room air conditioning market gained momentum and flourished. But, in June 2011, the Government Subsidy to Energy-Saving Household Appliance came to an end, followed by the Household Appliance Trade-In credit at the close of 2011. The Home Appliance Subsidy Program for Rural Areas is expected to end in 2012.