How will the 2027 ban on R22 in multi-split air conditioners reshape the Chinese refrigerant market?

How will the 2027 ban on R22 in multi-split air conditioners reshape the Chinese refrigerant market?
China's Ministry of Ecology and Environment has proposed banning production of multi-split air conditioning and heat pump units using HCFC-22 (R22) starting January 1, 2027. This covers variable refrigerant flow systems, low-temperature air-source multi-split heat pumps, and photovoltaic-driven units. China accounts for over 60% of global multi-split production, with more than 30 manufacturers affected. Since 2011, multilateral fund grants have supported only two producers' line conversions, eliminating about 800 tons of R22, roughly 53% of the sector's required phase-out. The remaining producers must now accelerate transitions to alternatives like R32 or R410A. This regulatory push aligns with China's HCFC phase-down commitments and will likely tighten R22 supply for other applications, including residential AC servicing and industrial refrigeration, potentially supporting R22 prices in the near term.