A high-stakes war of words has erupted between two of China’s largest home appliance manufacturers, Gree Electric and Hisense. The dispute centers on the marketing phrase "True Copper, Solid Material," a term used by Hisense to emphasize product quality. Gree’s Chief Marketing Officer, Zhu Lei, took to social media to claim the phrase as a Gree original, asserting that brands using aluminum in motor windings have no right to use such language.
Hisense responded swiftly, with Brand Director Yang Xiangxi arguing that the phrase has been industry shorthand for quality for over a decade and does not belong to any single entity. Yang further countered by presenting evidence that most major brands, including Midea and Haier, prioritize copper in critical components like condensers and evaporators. The rebuttal included video evidence suggesting that while other brands were championing copper as early as 2016, Gree was notably absent from those specific industry reports.
The friction between these giants is intensified by a volatile commodities market. Copper is a primary component of air conditioners, accounting for roughly 20% of total manufacturing costs. With LME copper prices surging over 40% and domestic prices in China breaching the 90,000 RMB per ton mark, the industry is facing an existential margin squeeze. This has forced many manufacturers to consider "aluminum-for-copper" (AFC) substitutions to maintain profitability.
Gree has positioned itself as the holdout against this trend, with leadership frequently stating that aluminum’s inferior thermal conductivity and corrosion resistance make it an unacceptable substitute for the Chinese market. However, the feud took a turn when Hisense published documents appearing to show Gree’s application to join an industry research group focused on aluminum applications. The revelation complicates Gree’s public narrative of being a singular defender of the copper standard.
Gree’s CMO later clarified that while the company participates in aluminum research to maintain technological readiness, it has not moved to advocate for the replacement of copper in its core domestic products. The company currently maintains a ten-year warranty policy that it claims is only possible with copper components. Nevertheless, Gree admitted to using aluminum platforms for specific overseas markets where dry climates reduce the risk of metal degradation.