Midea Residential Air Conditioner to Eye Business Expansion in SE Asia After AEO Sino-Thai Mutual Agreement


On Oct 28 Beijing Time, as an enterprise representative, Midea Residential Air Conditioner Division (“Midea RAC”) participated in an online certification observation meeting as part of the Authorized Economic Operator (AEO) Mutual Recognition Action Plan between the customs of China and Thailand (“the Plan”).

The purpose of the virtual meeting, as part of the protocols of the Plan, was to allow Thai Customs to better understand the field certification process carried out by China Customs and conduct face-to-face communication between the customs authorities of the two countries. In addition, it helped Thai Customs to gain comprehensive knowledge of China’s benchmark enterprises and contributed to the optimization of the AEO mutual recognition process between the two countries.

During the meeting, Midea RAC demonstrated to Thai Customs its compliance and standardized management capabilities as a Chinese AEO benchmark enterprise in enterprise management, IT-based control, trade security control and other aspects.

Midea RAC has met pre-determined standards under the AEO program and has been certified by China Customs as an “Advanced Certified Enterprise” (ACE) in 2016. In April this year, it was selected by China Customs as one of the first batches of AEO international mutual recognition enterprises for observation purposes, to serve as a benchmark for other companies on how to conduct themselves regarding the AEO mutual recognition process.

Liu Quanfa, Head of Global Customs Affairs, Midea Group, said, “As a leading large-scale Chinese foreign trade firm, Midea RAC exports products to ThailandMalaysia, and many other Southeast Asian countries. Thanks to the AEO system, the customs clearance process has been vastly simplified and accelerated and enables us to expand our business in Southeast Asia without the obstacle of bureaucratic red tape.”

The AEO system is supported by the World Customs Organization, in which customs authorities of member countries certify manufacturers that have demonstrated higher levels of compliance, credit status, and security, and provides prioritized and accelerated customs clearance for those who pass the certification. An AEO can enjoy reduced customs inspection and prioritized customs clearance when shipping goods between the two countries who reached mutual recognition agreements.

Specializing in the R&D, production, and sales of household air conditioners, Midea RAC has in place a complete industrial chain. In line with the group’s mission of creating a digital and intelligence-driven firm that provides technology leadership and direct access to users in addition to being a technology innovator, Midea is committed to becoming a global leader in the home air conditioning sector, exporting products to nearly 400 million users in 200 countries and regions worldwide.

As Customs of both China and Thailand have pledged to accelerate talks on AEO mutual recognition under the Plan, Midea RAC is expected to reduce trade-related expenses such as port, insurance, and logistics costs, boost production at its factory in Thailand, enhance international competitiveness, and streamline its development roadmap which includes participation in the Regional Comprehensive Economic Partnership (RCEP).


WEF recognizes Midea Group as a pioneer in the 4th Industrial Revolution for the 3rd time, with 2 new Midea manufacturing sites joining the Global Lighthouse Network in 2022


Midea Group Co., Ltd. (000333CH) was honoured as a pioneer of Industry 4.0 technologies with two factories, Midea Heifei and Midea Jingzhou, included in the Global Lighthouse Network of the World Economic Forum (WEF), showing the Group’s efforts in achieving both production efficiency and sustainability.

The Global Lighthouse Network is a community of production sites and value chains which are world leaders in the adoption and integration of the cutting-edge technologies of the Fourth Industrial Revolution (4IR). In total, Midea Group owns 4 WEF Lighthouse factories covering smart home appliances, which account for a relatively high proportion of the Group’s revenue.

“Our factory used to produce high-end and middle-end products at the same time, and our production faced a very big challenge,” commented Li Zhen, General Manager of Midea Jingzhou factory. “It was very inefficient in the traditional manufacturing way, and difficult to meet the needs of our consumers in time.”

Through the implementation of the digital and intelligent transformation measures, Midea Jingzhou lighthouse factory adopted flexible automation. loT and artificial intelligence with more than 2,000 digital transformation initiatives have increased labor productivity by 52%, and reduced production lead time by 25%, the failure rate by 53%, and the utility consumption per unit by 20%.

Midea washing machine factory in Hefei has also witnessed a similar revolution. The number of product SKUs exceeds 1,100 and the annual production and sales volume of Midea Hefei is also at the forefront. “Digitalization has driven the transformation of our entire business process, model and increased efficiency,” according to Zhang Zhimin, General Manager of the factory.

Targeting domestic high-end product segments and overseas market expansion, Midea Hefei Advanced 4IR Lighthouse factory widely deploys artificial intelligence and loT technologies across end-to-end value chains to form a faster response and more efficient supply chain, resulting in lead time reduction by 56%, customer report defect rate reduction by 36%, and labor productivity improvement by 45%. Also, it also helps to meet the goal of achieving carbon emissions peak in 2025 and net-zero in 2040.

“In the future, Midea Group will continue to increase investment in digitalization, IoT, global breakthroughs and technological leadership and invest in new cutting-edge technologies,” said Simon Zhang, CIO of Midea Group.

About Midea Group Co., Ltd.
Midea Group, with the vision of “bringing great innovations to life”, has upheld the philosophy of creating a better life with technology for 54 years since its establishment. Today, Midea has evolved into a sci-tech conglomerate, specializing in Smart Home Business, Industrial Technologies, Building Technologies, Robotics & Automation, and Digital Innovation Business. Over the past five years, nearly 45 billion RMB has been invested in R&D, with 35 R&D centers and 35 major production bases in the world. Our products and services benefit about 500 million consumers in over 200 countries/regions.

SOURCE Midea Group