(Yicai) May 20 -- Home appliances giant Midea Group will actively defend its market share against rising rival Xiaomi but does not fear the competition, Chairman and President Fang Hongbo said in his first public comment on the intensifying battle between the two Chinese firms.

While Midea takes Xiaomi seriously at the tactical level, the Foshan-based company is not afraid of maker of consumer electronics and electric cars from a strategic standpoint, Fang said yesterday, adding that Midea will not stand by and watch Xiaomi encroach on its market share.

“Every single business Midea is in, Xiaomi has now entered,” Fang pointed out. “Midea has just completed a 100,000-word report on Xiaomi and continues to learn from it.” he said.

China’s home appliances market had long been stable, with incumbent players coexisting peacefully for year, Fang noted. The entry of outsider Xiaomi into the sector is a positive development that Midea must confront with a proactive mindset, he added.

While Midea is moving upmarket to develop higher value-added products, it must also move downward to actively engage in market competition, Fang said.

About a decade ago, the pair formed a partnership. Midea hoped to adopt Xiaomi’s internet-driven business approach, while Xiaomi sought to learn from Midea’s expertise in smart manufacturing. They even held cross-shareholdings and jointly launched a co-branded air conditioner line.

But Xiaomi launched its own aircon brand a few years later and entered the washing machine, refrigerator, and small appliance product markets, ending the tie-up.

When asked whether Midea plans to follow Xiaomi into televisions and vehicles, Fang said that while many carmakers had approached it for partnership, he believes Midea lacks the capability to enter the auto sector. As for TVs, Fang noted that the market dynamics change too quickly, and Midea, as a newcomer, may struggle to keep pace.

Xiaomi aims to become a leading home appliances company in China within three years, President Lu Weibing said last year.

Revenue from major appliances, such as aircons, refrigerators, and washing machines, soared over 50 percent in 2024, according to Xiaomi’s annual earnings report. With summer approaching, the firm has already launched a price war in the aircon market.

Midea and Gree Electric Appliances had retained their top two positions in the Chinese market for air conditioners this year as of May 11, according to data from All View Cloud Data Technology. Compared with the same period of last year, their market shares saw little change, while Xiaomi’s jumped to 13.4 percent from 8 percent, taking it to third place from fourth.

Editors: Tang Shihua, Futura Costaglione