The EU’s push to boost domestic manufacturing can bring benefits for both China and Europe, European Heat Pump Association director general Paul Kenny told the Chinese heat pump sector today.
Europe dominates manufacturing and assembly of the highest value components of hydronic heat pumps, EHPA’s research shows. Yet it is supplied from a global chain, including some components from China.
Chinese heat pump manufacturers should continue to collaborate with Europeans – employing people with local knowhow – and provide value to the European market, Paul Kenny will say in the speech to the 2026 Chinese heat pump forum in Wuhan.
This engagement will be key to gaining public support and maintaining a fluid global supply chain that optimises value for all market participants.
This is especially important given the upcoming EU rules that will mandate heat pumps eligible for public subsidies are ‘of European origin’.
So far this global, high value for Europe approach has worked well, yet European politicians are on guard: they have seen sectors like solar power gobbled up by Chinese companies and they do not trust China to respect World Trade Organisation rules, with highly subsidied capital available for manufacturing in China.
Europe does not want the same for the heat pump industry, especially as this plays into the hands of populists who link China with clean tech to undermine the energy transition, Kenny will warn. Instead, Europeans must acknowledge the power of Chinese demand for pushing companies to innovate, for example on batteries.
If Chinese companies work together with Europeans on heat pumps, and bring economic benefits to Europe – as is already being done by companies like Midea – the result will be a stronger global heat pump sector, with both China and Europe reaping the benefits.
EHPA President Patrick Crombez will tomorrow also give a speech at the event addressing heat pump policies.
