He Xiangjian: The Visionary Behind Midea’s Global Empire
Few stories in the pantheon of self-made Chinese billionaires are as compelling as He Xiangjian’s, the modest founder of Midea Group. With a net worth of more than $25 billion, He Xiangjian did more than just develop a firm; he revolutionized home appliance manufacturing, transforming Midea into a global powerhouse that today competes with industry titans such as LG and Whirlpool. What distinguishes his path is not only the degree of success, but also how it was accomplished: through quiet persistence, tireless innovation, and an almost prophetic knowledge of China’s economic transition.
He Xiangjian: Roots in Guangdong’s Industrial Heartland
He Xiangjian was born in 1942 in Shunde, Guangdong, a region later associated with China’s manufacturing boom. Growing up in poverty during the turbulent postwar years, He Xiangjian realized early on that survival requires both perseverance and resourcefulness. His family, like most in their village, lived on subsistence farming, but as a child, he shown an uncommon talent for mechanics, frequently disassembling and reassembling household things to learn how they functioned.
This humble background served as the furnace for He Xiangjian’s later ideology. While other industrialists sought quick gains, he concentrated on long-term growth, a mentality ingrained by observing his parents stretch their little means. Shunde’s cultural DNA, which emphasized community trust and workmanship, also influenced his leadership approach. Even as Midea grew into an international firm, He Xiangjian remained committed to these grassroots ideas, insisting on referring to employees as “family” rather than personnel.
He Xiangjian: The Apprenticeship That Shaped a Titan
Formal schooling was a luxury that He Xiangjian could not afford. After primary school, he worked odd occupations such as construction worker, bicycle repairman, and even a temporary position at a local fertilizer company. Each job evolved into a hands-on problem-solving seminar. By his early twenties, He Xiangjian had established himself as the go-to fixer for faulty machinery, which piqued the interest of Beijiao Production Brigade officials. In 1968, they assigned him the management of an almost insolvent workshop that produced bottle caps and glass components.
Also Read: Vagit Alekperov: The Architect of Russia’s Oil Empire
This unappealing task became He Xiangjian’s proving ground. While others saw a failing collective, he saw a chance to experiment with manufacturing methods. He worked 16-hour days, redesigning molds to reduce waste and bartering with adjacent firms for better materials. Within two years, the workshop became profitable—a quiet but significant win that paved the way for Midea’s future.
The Spark That Ignited an Appliance Revolution
The actual metamorphosis came in 1980, when He Xiangjian, aged 38, shifted the workshop to produce electric fans. With China’s economic reforms gaining traction, he saw a rising consumer class looking for low-cost household products. His breakthrough came from an unexpected source: a disassembled Japanese fan. He Xiangjian devised a sturdy, low-cost substitute by reverse-engineering its components and simplifying the design, which was an instant success. Profits from these sales helped fund Midea’s first air conditioner in 1985, a device that would define the company’s rise.
Redefining “Made in China”
He Xiangjian’s biggest accomplishment was not just growing Midea, but also transforming worldwide perceptions of Chinese manufacturing. While competitors cut savings, he invested heavily in R&D, founding Midea’s first refrigeration lab in 1993. This devotion to quality paid off: by 2010, Midea air conditioners had surpassed Mitsubishi in global market share. Midea’s $5 billion acquisition of German robotics firm KUKA in 2016 was another masterstroke, propelling the company to the forefront of industrial automation.
What genuinely distinguishes He Xiangjian is his long-term mindset. While other tycoons pursued IPOs, he kept Midea private until 2013, retaining control over its culture. This combination between aggressive expansion and precise management is reflected in his leadership mantra, “Grow like a weed, but manage like a bonsai”. Midea, which operates in 200 countries and has annual revenues of more than $50 billion, is a tribute to his ambition.
The Family Behind the Fortune
Regardless of his affluence, He Xiangjian has always valued seclusion. He married his wife, Lu Desheng, in the 1970s, and they raised two sons, He Jianfeng and He Jianwei, both of whom are now prominent executives at Midea. Notably, neither was given the title of CEO; instead, they earned their positions via decades of grassroots experience, reflecting their father’s meritocratic principles. The family’s low-key living in Shunde contrasts significantly with the flashiness prevalent among billionaires, emphasizing He Xiangjian’s philosophy that “wealth should serve purpose, not vanity.”
A Fortune Built to Last
He Xiangjian’s net worth of $25 billion is only part of the story. Unlike IT fortunes linked to stock volatility, his wealth is derived from tangible assets—factories employing 150,000 people, patents protecting 100,000+ innovations, and a vertically integrated supply chain. Even during economic downturns, Midea’s diverse portfolio (ranging from $50 rice cookers to $500,000 industrial robots) maintains remarkable stability.
Also Read: Iris Fontbona: The Quiet Force Behind Chile’s Mining Fortune
The second source of his fortune is strategic vision. He Xiangjian acquired KUKA to obtain control of automation technology that is crucial to contemporary production. As factories throughout the world transition to “lights-out” work, Midea’s robotics section has grown into a profit powerhouse, demonstrating his ability to capitalize on global trends before they materialize.
The Next Chapter: Legacy and Innovation
Now in his eighties, He Xiangjian has moved his concentration to philanthropy, specifically vocational education in rural China. But his impact on Midea continues—the company’s recent $1.1 billion investment in EV components and smart city technology suggests that his vision is still guiding. Industry analysts expect that Midea’s next frontier will be energy storage, which will align with China’s carbon neutrality aspirations. Whatever the outcome, one thing is certain: He Xiangjian’s legacy will be measured not only in riches, but also in how he redefined what Chinese company might accomplish on a global scale.
