"We have witnessed dramatic growth in air conditioner exports to North America and some other markets, which is likely to spark trade conflicts," said Hu Xiaohong, a senior official at the China Household Electrical Appliances Association (CHEAA).

Customers look at air conditioners at a department store in Nanjing, East China's Jiangsu Province. [newsphoto]

China sold 8.8 million air conditioners to the United States in the first seven months of this year, a massive increase from 6.6 million in the whole of 2005, according to CHEAA figures.

Meanwhile, exports of Chinese air conditioners to India leapt 120 per cent year-on-year in the first seven months of this year, while exports to Mexico increased 126 per cent over the same period.

Most Chinese air conditioners sold overseas are low and medium-end products, which are most vulnerable to anti-dumping claims.

Chinese air conditioners sold in the United States for an average price of US$114, compared to an overall market average of US$128.

Hu pointed out that US air conditioner manufacturers had already started preparing an anti-dumping investigation against South Korean firms such as LG Electronics, with the possibility that this may be extended to Chinese companies.

LG Electronics exported 2.53 million air conditioners to the United States in the first seven months of this year, up 50 per cent year-on-year.

Hu said that the association would soon take steps to make Chinese manufacturers aware of the gravity of the situation.

China is currently the world's biggest exporter of air conditioners. It sold 24.5 million air conditioners to overseas markets last year, accounting for 48 per cent of total global exports.

1

2

3