China Remains World's Most Competitive Maker of Small Home Appliances, Insiders Say

(Yicai Global) Oct. 13, 2025 — China retains its position as the world’s most competitive production hub for small home appliances, even as US tariff fluctuations have pushed some small and medium-sized exporters to explore overseas manufacturing, industry insiders told Yicai.

Luckyway Home Appliances had planned to build a plant in Cambodia or Malaysia six months ago but abandoned the idea after on-site inspections, General Manager Li Mingyang said. Most of its electric fans are exported to the US, yet the firm still produces entirely at its Zhongshan, Guangdong factory. Malaysian workers’ monthly salaries rose 7% to 8% in six months, and factory rents climbed, Li noted, adding that China’s small home appliance sector still has unrivaled manufacturing costs and supply chain strength.

Supply chain gaps are another barrier to overseas expansion. Yu Xuehui, founder of Cixi Home Appliances Store in China’s “small home appliance capital,” said only 15% to 20% of Cixi-made small appliances go to the US. “Cixi’s supply chain is unmatched—any component can arrive within an hour, with multiple suppliers for every part,” Yu explained.

Chinese manufacturers are adapting by shifting focus to Southeast Asia, Europe, and the Middle East, and investing in R&D to boost product quality and brand recognition, industry experts added.