Core Viewpoint - Major air conditioning companies, including Haier, Midea, Xiaomi, and TCL, have committed to adhering to the "Self-Discipline Convention for Aluminum Reinforcement Application Research Working Group" to promote the "aluminum replacing copper" technology, while Gree Electric Appliances has notably opted out of this commitment [2][4][6]. Group 1: Industry Developments - The "aluminum replacing copper" initiative has gained traction among leading air conditioning manufacturers, with a collective push for industry standards and guidelines [4][9]. - Gree Electric Appliances has consistently stated that it does not have plans to adopt aluminum in its products until it can ensure 100% reliability, highlighting its cautious approach to product quality [6][11]. - The air conditioning industry is experiencing a significant shift towards aluminum, driven by the high costs of copper, which can account for 20% of the cost of a single air conditioner, while aluminum costs only about one-tenth of copper [8][9]. Group 2: Strategic Implications - The push for "aluminum replacing copper" is not only a technological evolution but also a strategic necessity for the domestic appliance industry, as over 95% of copper is imported, making the industry vulnerable to supply chain disruptions [9]. - The Ministry of Industry and Information Technology has proposed expanding aluminum consumption in various applications, including air conditioning, as part of a broader strategy for high-quality aluminum industry development from 2025 to 2027 [9]. - Gree's reluctance to adopt aluminum may lead to higher product costs, especially as international copper prices continue to rise, potentially pushing Gree's products out of competitive price ranges [11].