Full Breakdown
Chinese Manufacturers Accelerate European Expansion in 2026
8/31/2026, 11:22:57 AM
Revenue Surge and Market Performance
Midea Group posted first-half operating revenue of 261.05 billion yuan (? $38.81 billion), a 3.5 % year-on-year increase, with net profit attributable to shareholders rising 1.7 % to 26.45 billion yuan. Overseas markets contributed 113.13 billion yuan, up 5.5 % versus a 1.9 % rise in the Chinese mainland. The company highlighted a more than 200 % year-on-year jump in sales of its PortaSplit portable split air conditioner, a product co-developed for European climates.
Zoomlion reported first-half operating revenue of 27.14 billion yuan, up 9.17 % year-on-year, and overseas revenue of 15.54 billion yuan, a 12.45 % increase. By the end of June, the firm employed nearly 7,000 local staff abroad and brought its Hungarian smart-manufacturing facility online while expanding a German plant.
Localization Strategy and Joint Ventures
Both firms cite the “In Europe, For Europe” approach, which emphasizes tailoring products to regional needs and integrating into local supply chains. Midea’s PortaSplit was designed with European R&D, design, and sales teams to meet specific building codes and climate conditions.
On April 10, Sany Crane and German crane maker Putzmeister signed a cooperation agreement in Aichtal, Germany, to produce all-terrain cranes locally. The partnership will upgrade Putzmeister’s assembly line in Eichstätt and, after a May 2024 start of local production, Sany plans a new European crane plant capable of delivering 200 units annually.
Economic Contributions and Trade Context
Chinese enterprises in Europe are creating jobs and generating tax revenue for host communities, according to Professor Cui Hongjian of Beijing Foreign Studies University. He warned that rejecting Chinese investment would forfeit capital, employment, and social stability.
Bilateral trade between China and the EU reached $828.1 billion in 2025, a 5.4 % year-on-year rise, and two-way investment stock exceeded $280 billion by the end of 2025. A joint report by the China Chamber of Commerce to the EU, China Economic Information Service Shanghai, and Xinhua News Agency Europe noted that, despite tighter EU policies, Chinese firms remain optimistic and intend to scale up investments.
Official Commentary
Midea’s corporate release linked the PortaSplit’s performance to its “local for local” strategy, while Sany described the German cooperation as a step toward strengthening its European supply capabilities.
Outlook
The continued rollout of localized manufacturing facilities and joint-venture projects suggests that Chinese manufacturers will further embed themselves in European industrial ecosystems throughout the remainder of 2026.
