As the year draws to a close, China's manufacturing sector is experiencing a subtle tension due to a "copper vs. aluminum" debate. At the recent 2025 China Household Appliance Technology Annual Conference, the China Refrigeration Society officially released the group standard "Construction Specification for Production Lines of Aluminum Tube-Fin Heat Exchangers for Room Air Conditioners." On the same day, 19 air conditioner manufacturers, including Haier, Midea, Hisense, TCL, Aux, Xiaomi, and Meibo, jointly announced their participation in the self-regulatory convention of the Air Conditioner Aluminum Strengthening Application Research Working Group. According to the convention, companies are to "refrain from malicious attacks, scientifically promote the characteristics of aluminum heat exchanger air conditioners, avoid exaggeration or false promises, and effectively enhance consumer trust in the industry's products and technologies." However, Gree Electric Appliances, Inc. Of Zhuhai, another industry giant and a participant in the revision of the national standard "Heat Exchangers for Room Air Conditioners," was notably absent from this initiative launch.
On December 23, Gree stated on an interactive platform that copper is a core raw material for air conditioners, accounting for about 20% of the cost. Although, under equivalent conditions, the cost of aluminum is about 1/12th that of copper (with a price about 1/4th and density about 1/3rd), it significantly lags behind copper in parameters such as melting point, thermal conductivity, resistivity, corrosion resistance, and long-term reliability. Gree indicated that as long as the performance, quality, and reliability of aluminum cannot be fully guaranteed, the company has no immediate plans to substitute copper with aluminum. Nonetheless, Gree also expressed that it values research into aluminum-for-copper technology and will continue to monitor industry trends. Copper has been the chosen material for air conditioner tubing for a century. Now, as the domestic industry vigorously pushes for "aluminum replacing copper," Dong Mingzhu and Gree's continued adherence to the "copper route" raises the question: is it for consumer consideration, or an attempt to differentiate their products from competitors?
Dong Mingzhu has firmly defended the "copper" path. In fact, as early as June 2024, she publicly addressed the issue of "aluminum replacing copper" in the air conditioning industry. This was against the backdrop of rising copper prices already impacting Gree's profit margins. Responding at a shareholders' meeting, Dong stated, "We are aware that some air conditioner companies have started using aluminum instead of copper. Currently, the durability and stability of aluminum substitution cannot be guaranteed. Therefore, without 100% certainty, Gree will absolutely not use aluminum to replace copper." She further emphasized, "Quality is always the primary consideration, not cost. Only when quality is equivalent can we consider cost. The rise in copper prices this year puts pressure on Gree, but to be a good company, we must be responsible to the country, to shareholders, and also to employees." Beyond product quality concerns, after-sales service is another major reason for Gree's commitment to copper. Since 2021, Gree has implemented the industry's highest service standard in the domestic market: "10-year free comprehensive repair." Adopting aluminum substitution would conflict significantly with this policy; a substantial increase in repair rates could potentially devour all profits through the 10-year warranty costs.
From the consumer perspective, there is notable attention paid to the materials used in Gree air conditioners. According to AVC's research data, 68% of users explicitly consider whether the unit is "all-copper" when purchasing a Gree product. Media analysis suggests that if Gree were to abandon the "all-copper" label, it would effectively blur its premium image and risk getting mired in price wars. Besides Gree, another manufacturer expressing reluctance to follow the "aluminum-for-copper" trend is Philips. Philips Air Conditioner's head, Xu Zifa, even stated, "Although I am not proficient in technical R&D, I know that good products must be made from good materials." It is worth noting that Xu Zifa is a former Gree executive, having served as General Manager of Hebei Gree and as a director of Gree Electric Appliances before leaving for Philips in 2022. Despite Gree and Philips advocating for quality by sticking with copper, the significant price advantage offered by aluminum substitution suggests that other companies may transition their products much faster than anticipated, thereby increasing market pressure on copper-tube air conditioners. Recently, JD.com partnered with Wanbao to launch a zinc-aluminum alloy air conditioner, with a 1.5-horsepower wall-mounted standard model priced at just 999 yuan, backed by a strong after-sales policy including "5-year warranty, 50% off replacement in years 6-10, and replacement-only-no-repair within 365 days." Previously, the retail price for 1.5-horsepower aluminum-tube air conditioners was around 1599-1699 yuan, while comparable copper-tube models typically cost no less than 2000 yuan.
The substitution of aluminum for copper appears to be an inevitable trend. Internationally, replacing copper tubes with aluminum tubes in appliances is already becoming commonplace. The penetration rate of all-aluminum heat exchangers exceeds 90% in global automotive air conditioning and over 80% in household refrigerators. In the air conditioning sector, the adoption rate of aluminum heat exchangers is over 50% in North America, over 40% in Japan, and reaches 30%-40% in South Korea and Southeast Asia. The reasons are twofold: continuous improvements in aluminum tube processing technology and the sustained surge in copper prices. Recent data shows Shanghai spot copper futures nearing 93,000 yuan per ton, hitting a new record high. In contrast, the spot price of aluminum is around 22,000 yuan, creating a price gap exceeding four times. For a single air conditioner, copper materials constitute nearly 20% of the total cost. Complete substitution with aluminum could potentially reduce this material cost to just 10% of the original. Considering China's specific context, as the world's largest producer and consumer of air conditioners, it relies on imports for about 80% of its copper. In comparison, China accounts for 60% of global primary aluminum production, making aluminum supply more controllable than copper. Consequently, the government has been actively promoting the high-quality development of the aluminum industry. On March 4 of this year, the revision task for the "Heat Exchangers for Room Air Conditioners" standard was officially assigned. This revision adds microchannel heat exchangers and all-aluminum round tube fin heat exchangers to the existing national standard, providing standard support for "saving copper with aluminum" in the industry. Furthermore, the "Implementation Plan for High-Quality Development of the Aluminum Industry (2025-2027)" issued on March 28 explicitly lists "saving copper with aluminum" in air conditioner heat exchangers as a key direction for expanding aluminum consumption. Thus, from both industrial development and national strategic perspectives, "aluminum replacing copper" seems destined to become the prevailing trend.
Despite this trend, why do companies like Gree remain cautious? The core issue lies in technical processes. Dong Mingzhu has previously clarified, "We are not saying we won't research [aluminum substitution]. Once aluminum can completely replace copper, I will certainly adopt it." Among household appliances, refrigerators have progressed fastest in adopting aluminum. Industry data indicates that aluminum accounts for nearly 90% of the material in refrigerator cooling systems. This is feasible because refrigerator systems operate mostly under stable conditions with slow temperature changes and lower loads, allowing some inherent disadvantages of aluminum to be overlooked. Air conditioners, however, must provide both cooling and heating functions, placing higher demands on the tubing materials. Whether current aluminum manufacturing processes can meet the intense operational requirements of air conditioners is a point on which major manufacturers have yet to reach a consensus. At least in Dong Mingzhu's view, at this stage, "aluminum cannot completely replace copper."
While 19 manufacturers have banded together to embrace the "aluminum-for-copper" path, Gree's steadfast stance, though seemingly unconventional, has garnered significant consumer support on social media. The reason lies in the enduring value of trust in major purchases, especially in an era of perceived consumption downgrading. In recent years, some manufacturers have switched connecting pipes from copper to aluminum in low-end models without informing consumers, leading to numerous cases of refrigerant leakage and unit failure after three to five years due to aluminum pipe oxidation and corrosion. These manufacturers reaped cost benefits without passing savings to consumers, perfectly illustrating a "bait-and-switch" tactic. For some counterfeit brands, "aluminum for copper" is a common trick. There have been reports of consumers purchasing a "Gree" air conditioner online only to find the brand on the packaging was a lookalike like "Mu Ge Li"; such units often feature aluminum pipes merely coated with a layer of copper. Data from the China Consumers Association shows a 22% year-on-year increase in air conditioner complaints in the first half of 2025, with issues like "reduced cooling capacity" and "pipe leakage" being frequent keywords, often linked to aluminum-substitution models. While these instances shouldn't equate all "aluminum-for-copper" air conditioners with poor quality, most consumers are understandably unwilling to take risks with potential product flaws. For consumers to genuinely accept aluminum-tube air conditioners, mere corporate alliances and slogans are insufficient. The most critical factor is that future "aluminum-for-copper" models must be competitive not only in price but, more importantly, guaranteed in quality. From this perspective, Gree's strategy of "daring to be last" can be seen as astute: choosing to enter a market segment only after demand is verified, avoiding premature investment in high-risk areas. Once aluminum-tube air conditioners gain full market acceptance, Gree could potentially enter with its quality-focused approach, leveraging its product reputation and user base to emerge as a winner eventually.
For consumers with immediate purchasing needs during this product transition period, the choice should align with personal requirements. All-copper air conditioners may not suit everyone, and aluminum-substitution models are not necessarily just the cheap option. Provided they meet manufacturing standards, both product types should have their place in the market. The China Household Electrical Appliances Association recently published an article suggesting that companies scientifically define the promotion areas and price ranges for aluminum-substitution products based on product positioning, usage environment, and target demographics. For instance, pilot programs could be prioritized in regions with mild climates and moderate usage intensity. The association also emphasized the need to manage the substitution pace appropriately to mitigate risks, avoiding blind replacement in high-load or high-corrosion risk scenarios. It concluded that genuine industry progress lies not in a simplistic choice between "copper" and "aluminum," but in finding the optimal balance between ensuring quality, respecting users, and serving national strategy.
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