European home appliance regulations may undergo adjustments—how should Chinese companies respond to the Samsung-LG alliance?

In 2027, the competitive landscape of Europe’s home appliance industry could undergo a significant adjustment.

In late July, multiple international media outlets reported that Samsung Electronics and LG Electronics, together with the European Association of Home Appliance Manufacturers (APPLiA), as well as 16 major European home appliance companies including Miele, Dyson, Electrolux, and Beko, submitted an open letter to the European Commission, urging it to formulate a dedicated 'European Home Appliance Industry Strategy' to provide clearer policy support for European home appliance manufacturing.

This open letter has drawn attention not only because of the large number of participating companies but, more importantly, because competition in the industry has traditionally centered on product performance, pricing, and distribution channels—whereas now, smart ecosystems, industrial policy, and standard-setting are emerging as new battlegrounds.

Notably, no Chinese home appliance manufacturers appeared on this joint initiative.

As global competition in the home appliance sector expands beyond merely 'selling products' to 'shaping the rules,' the future trajectory of Chinese enterprises in the European market has become a key concern for the industry.

Korean-European Alliance: Seeking More Than Just Policy Support

Samsung and LG’s decision to align with European domestic manufacturers is linked to the mounting pressures currently facing Europe’s home appliance industry.

The European Union continues to advance its green transition, steadily raising requirements for energy efficiency, ecodesign standards, and regulations related to smart appliances. In its open letter, APPLiA stated that some policy demands diverge from the realities of actual production environments, and rising energy costs coupled with increased regulatory burdens are undermining the competitiveness of European manufacturing.

According to statistics from APPLiA, over the past decade, the share of home appliances produced locally in Europe has declined from 81.3% to 71.4%, and more than 20,000 manufacturing jobs have been lost in the last five years. For European companies, the challenge is no longer just about costs—it’s about whether their supply chains can remain based in Europe at all.

At the same time, the value of the home appliance industry is being re-evaluated.

According to data from the European Association of Home Appliance Manufacturers, the European home appliance industry generates approximately EUR 79 billion in annual economic value added, operates 130 manufacturing plants, and supports nearly one million jobs.

With the advancement of AI and smart home technologies, home appliances are no longer just traditional durable goods but are increasingly becoming a critical entry point into the digital home ecosystem. This context underpins Samsung and LG's active participation in this initiative.

Based on the content of the open letter, the companies' requests include formulating an industrial strategy, increasing financial support, promoting industrial cluster development, and establishing a fair trade environment. However, from a competitive industry perspective, these demands ultimately aim to enhance the influence of the home appliance sector within the EU policy framework.

If the home appliance industry is designated as a priority sector for European support in the future, the implications would extend beyond funding and subsidies to include standard-setting, market access, and the direction of industrial policy.

For Samsung and LG, engaging in such policy discussions means enhancing their voice within Europe’s industrial framework.

Currently, Samsung is continuously building its smart home ecosystem by connecting devices such as TVs, refrigerators, and air conditioners through its SmartThings platform, while LG is accelerating its European market expansion around AI-powered kitchen appliances, smart home solutions, and premium home appliances.

The two South Korean companies are leveraging their technological and ecosystem advantages to increase their influence within Europe’s industrial framework.

At the same time, the growing presence of Chinese home appliance manufacturers in the European market also forms a key backdrop to this initiative.

In recent years, brands such as Haier, Hisense, Midea, and TCL have steadily expanded their European operations, strengthening their market presence in air conditioners, televisions, and smart home segments. Faced with rising competitiveness from Chinese brands, Samsung and LG are deepening collaborations with European companies, seeking to enhance their own competitive edge through industrial synergy.

The Missing Names: Excluded, or Participating Differently?

No Chinese companies appeared on the list of signatories to the open letter, sparking speculation that Chinese brands might be excluded from Europe's industrial ecosystem.

In fact, this is not the case. The European Association of Domestic Appliance Manufacturers (APPLiA), established in 1958, is one of the key organizations in Europe’s home appliance industry. According to its membership requirements, companies typically need to have manufacturing facilities in Europe and operate across multiple European countries.

Haier Europe is already an APPLiA member company and has long participated in industrial cooperation within the European market.

Therefore, the absence of Chinese companies from this open letter should not be simplistically interpreted as exclusion from Europe’s industrial system.

The more critical issue lies in the nature of this open letter itself.

It is not merely a routine industry communication but rather a policy advocacy document addressed to EU decision-makers. Signatory companies are expected to express their demands from a shared stance of 'European industrial interests.'

For Chinese enterprises, this presents practical challenges.

Over the past few decades, Chinese home appliance companies have globalized primarily through manufacturing capabilities, supply chain advantages, and product competitiveness—gradually entering the European market via investments in local production, channel development, and brand promotion.

However, compared with companies like Samsung and LG, Chinese firms still have room to improve in policy engagement, participation in industry associations, and involvement in standard-setting processes.

Samsung and LG have operated in Europe for many years, building not only sales networks and production bases but also communication mechanisms with governments, industry associations, and industrial partners.

Meanwhile, industry competition is undergoing a transformation. Companies now need not only to produce high-quality products but also to engage in discussions around industry standards.

How to enhance this capability will become a critical challenge for Chinese home appliance companies in the next phase of globalization.

The Battle Over Ecosystems and Standards: A New Challenge for Chinese Enterprises

Regardless of whether this open letter ultimately leads the European Union to introduce new industrial policies, it reflects a clear trend: global competition in the home appliance sector is expanding into competition over ecosystems and standards.

In the past, home appliance manufacturers primarily competed on price, performance, and distribution channels. Today, as AI enters the home environment, smart interoperability, energy management, and data ecosystems are emerging as new competitive frontiers.

Samsung is driving interoperability across devices through a unified platform, while LG is building out its strategy around AI-powered appliances and premium home scenarios. Both companies share a common approach: strengthening user engagement through ecosystem integration and enhancing long-term competitive advantage by participating in standard-setting processes.

For Chinese home appliance companies, the future entails not just market competition, but also competition over rules and standards.

The European Union is advancing the development of interoperability standards for smart homes. If Chinese companies fail to participate adequately, their products may face higher adaptation costs when entering the European market in the future.

At the same time, the call from the European Association of Home Appliance Manufacturers for a fair trade environment could also reshape future market competition dynamics against the backdrop of evolving global trade conditions.

In terms of brand building, Chinese companies also need to further enhance their influence within the industry. If competitors engage in policy discussions as industry partners while Chinese brands remain confined to the role of product suppliers, their potential to elevate brand value may be constrained.

However, Chinese companies also possess clear advantages.

After years of development, companies such as Haier, Hisense, and Midea have established global manufacturing systems, building strong competitiveness in supply chains, smart manufacturing, and technological R&D, and are actively involved in setting international standards.

In the next phase, Chinese home appliance companies need to upgrade from exporting products overseas to exporting industrial capabilities.

On one hand, companies that have already established a presence in Europe should more proactively engage with local industry associations, policy discussions, and standard-setting processes—shifting from merely adapting to rules to actively shaping them.

On the other hand, China’s vast smart home appliance market and diverse application scenarios provide a solid foundation for companies to advance innovations in AI-powered appliances and smart interconnectivity technologies.

Competition in the European market is no longer just about sales volume.

The future evolution of the global home appliance industry will hinge on whether companies can simultaneously demonstrate product competitiveness, ecosystem-building capabilities, and the ability to participate in rule-making.

For Chinese home appliance companies, the next stage of competition in the European market will test not only how many products they can sell, but also whether they can evolve from market participants into active contributors to industry rule-making.

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