EHPA research shows that Europe dominates the manufacture and assembly of the highest-value heat pump components. However, the sector sources from a global network, including some components from China.
“Chinese heat pump manufacturers should continue working with Europeans, drawing on people with local knowledge and creating value for the European market,” said Paul Kenny in his speech at the 2026 China Heat Pump Forum in Wuhan.
This cooperation will be key to gaining public support and maintaining a smooth global supply chain that optimises value for all market participants. This is particularly important in view of forthcoming EU rules requiring heat pumps eligible for public subsidies to be of “European origin”.
So far, this global approach, which creates substantial value for Europe, has worked well, but European policymakers remain wary: they have seen Chinese companies take over sectors such as solar energy, and they do not believe China complies with World Trade Organization rules, given the heavily subsidised capital available for manufacturing in China.
Europe does not want the same outcome for the heat pump industry, particularly as it plays into the hands of populists who link China with clean technologies to undermine the energy transition, Kenny will warn. Europeans should instead recognise the strength of Chinese demand, which drives companies to innovate, for example in batteries.
