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Hisense Group, a major player in the home appliances industry, is not infringing on any intellectual property rights of Gree Electric Appliances by using the term “genuine copper materials” in their air conditioner advertisements.
A decade ago, Hisense and four other air conditioner manufacturers were among the initial recipients of the “genuine copper materials” certification, which was developed through a joint effort between the China Consumers Association and the International Copper Association. The brand director of Hisense’s air conditioning division clarified that this term was not created by Gree.
On April 14, Zhu Lei, Gree’s chief marketing officer, accused Hisense of intellectual property infringement, claiming that the phrase “genuine copper materials” was Gree’s own creation.
Hisense primarily uses copper tubes for condensers, evaporators, and connecting pipes in both indoor and outdoor units, with high-efficiency models featuring double-row copper tubes. In contrast, most of Gree’s exports utilize aluminum-wound motors, according to Yang Xiangxi.
Gree has acknowledged that it uses aluminum in the air conditioners sold overseas, citing that the dry climates in some countries reduce the risk of corrosion. However, for the models sold domestically, Gree insists that only pure copper is used to meet the decade-long free warranty requirement, as aluminum might fail to deliver the same reliability.
Industry experts indicate that substituting copper with aluminum in air conditioners is both necessary and feasible. They urged leading manufacturers to avoid stigmatizing aluminum as inferior. Despite some public bias against aluminum, experts argue that modern aluminum can match or exceed copper in resistance to corrosion, maintain performance over time, and extend the lifespan of units.
Chen Jianmin, Dean of Xi’an University of Technology’s Reliability Research Institute, emphasized the importance of viewing aluminum’s strategic value objectively and called for a shift away from stereotypes. He noted that China’s air conditioning industry is actively working on establishing third-party reliability evaluation systems, product certifications, and updating national standards to regulate aluminum substitution technology. These efforts aim to incorporate technical specifications, verification protocols, and evaluation criteria into official standards, ensuring consistent industry practices.
He Jinming, Vice President of the market consultancy firm AVC, pointed out that those companies promoting “genuine copper materials” as a unique selling point may hinder broader acceptance and adoption of aluminum-based technology. The adoption of aluminum in air conditioners still faces practical challenges, including real-world validation and consumer acceptance, as well as limited cost advantages due to low production volumes and high processing costs.
The Chinese air conditioning industry faces pressures from rising copper prices, saturated demand, and intense competition. According to AVC, last year’s average retail price for split-type air conditioners dropped nearly 5%, to CNY 3,099 (approximately USD 428). Additionally, retail sales are projected to decline by 6.9%, totaling CNY 219.5 billion (around USD 30.4 billion) this year.
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