How Europe's Heat Wave Turned Into a Trade Fight Over Air Conditioners

The recent string of heat waves across Europe has sent residents clamoring for air conditioning. China is emerging as the big winner in this, as Europeans are increasingly relying on this nation's air conditioning units to stay cool. Here is a look at how the extreme heat in Europe is triggering an unlikely trade war.

Europeans Lining Up to Buy Chinese Air Conditioners as Heat Deepens

Unlike most of the rest of the Western world, Europe has been slow to adopt central air conditioning in its homes. However, residents are starting to realize the value of this cool air as the summers get increasingly warmer at the hands of climate change. Temperatures have routinely hit the triple digits in many areas of Europe in recent weeks, following the trend of the last few summers.

The extreme heat has sent residents lining up for portable air conditioning units in an effort to find a bit of relief. It appears as if China is the big winner in this quest. Major Chinese brands such as Haier, Gree, and Midea are reporting higher sales of air conditioning units overseas right at the same time that some European countries are threatening to impose tariffs on Chinese products, claiming that they are hurting their own sales.

Air conditioning unit exports are just a small slice of Chinese exports to the European Union (EU). However, China is jumping on the opportunity to grow this market in the EU.

The author of an op-ed in China's official state-run news agency was critical of EU policymakers for wanting to impose the tariffs, saying that “Blocking Chinese ACs won’t fix Europe’s problems –– it will only make life harder for ordinary people."