Beatrice Lang
In 2020, a viral Facebook meme claimed that General Electric was being sold to a Chinese company for $5.4 billion. However, this was not entirely accurate. In reality, General Electric sold its appliances division, GE Appliances, to the China-based company Haier for $5.4 billion in 2016. GE Appliances continues to operate as an independent unit headquartered in Louisville, Kentucky, with the right to use the GE brand name until 2056. This sale represented China's largest acquisition of an overseas electronics business at the time.
| Characteristics | Values |
|---|---|
| Was General Electric sold to the Chinese? | No, there is no record of any announcement or reliable news report of a deal to sell General Electric (GE) to any Chinese company. |
| Date of the claim | Late 2020 and early 2021 |
| Source of the claim | A viral Facebook meme |
| Amount stated in the claim | $5.4 billion |
| Actual event | The figure of $5.4 billion refers to the sale of GE's appliances division to the China-based company Haier. |
| Date of the actual event | Announced in January 2016 and completed in the summer of 2016 |
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What You'll Learn
GE Appliances was sold to Haier for $5.4 billion
In 2020 and 2021, a viral Facebook meme claimed that General Electric was "being sold to a Chinese company for $5.4 billion". The post, published by Hal Downing, read: "General Electric is being sold to a Chinese company for $5.4 billion. Americans, are you concerned yet???". However, this is not entirely accurate.
In reality, the figure of "$5.4 billion" refers to the sale of GE's appliances division to the China-based company Haier. The sale was announced in January 2016 and completed in the summer of 2016—before that year's U.S. presidential election took place. This was long before Joe Biden announced his intention to run for president four years later, undermining the conspiracy theory that Biden's presidency would result in aggressive Chinese involvement in the American economy.
GE Appliances, headquartered in Louisville, Kentucky, operates as an independent subsidiary of the Chinese Haier Smart Home Company, a publicly traded affiliate of Haier. Haier has the right to use the GE brand name until 2056. GE Appliances is one of the largest appliance companies in the United States and manufactures appliances under several brands, including GE, GE Profile, Café, Monogram, Haier, and Hotpoint.
While GE Appliances was indeed sold to Haier for $5.4 billion, it is important to clarify that this sale occurred in 2016 and involved only the appliance division of General Electric, not the entire entity.
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The deal was announced in 2016
In 2016, General Electric (GE) announced that it had agreed to sell its appliances division, GE Appliances, to Qingdao Haier, a Chinese company, for $5.4 billion. The deal was announced in January 2016 and completed in the summer of the same year. GE Appliances is an American home appliance manufacturer based in Louisville, Kentucky, and is one of the largest appliance companies in the United States.
The transaction was approved by the boards of directors of both GE and Haier and was subject to customary closing conditions, including shareholder approval and regulatory approvals. As part of the deal, Haier entered into a long-term agreement with GE to continue using the GE Appliances brand. GE Chairman and CEO Jeff Immelt stated that the company was pleased to sell its appliances business to Haier, which was committed to growing the business globally. He added that the transaction would benefit GE's investors, customers, and employees.
The sale of GE Appliances to Haier was not the sale of the entire General Electric company to a Chinese buyer. Rather, it was the sale of one of GE's divisions, as indicated in the snopes.com fact-checking article. This fact undermines the broader suggestion that a sale of the entire company would "open the floodgates" for aggressive Chinese involvement in the American economy.
It is worth noting that the Facebook meme that sparked the discussion about the sale of General Electric to a Chinese company is technically incorrect. The meme, which was widely circulated in late 2020 and early 2021, claimed that General Electric was being sold to a Chinese company for $5.4 billion. However, as previously mentioned, the actual sale was for GE's appliances division, not the entire company.
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GE Appliances remains headquartered in Louisville, Kentucky
GE Appliances, a subsidiary of the Chinese Haier Smart Home Company, remains headquartered in Louisville, Kentucky. The company was acquired by Qingdao Haier (now Haier Smart Home Company) in 2016 for $5.4 billion.
GE Appliances has a long history in Louisville, with its Appliance Park campus in the city dating back to the 1950s. The campus, which covers 750 acres, is the company's global headquarters and largest manufacturing site, as well as its primary innovation center. It is also a hub for research and development, with over 1,600 engineers working across 80-plus high-tech labs and state-of-the-art manufacturing facilities. The campus employs over 8,000 people and contributes more than $7.4 billion to Kentucky's gross domestic product (GDP).
Since the acquisition, GE Appliances has continued to invest in its Louisville headquarters and the wider Kentucky community. In 2022, the company announced a partnership with Greater Louisville Inc. (GLI), Louisville's Metro Chamber of Commerce, to improve economic inclusion in the city and support diverse suppliers. GE Appliances has also positively impacted Louisville through community investments, including sponsoring the Kentucky Derby Festival and investing in public schools and community organizations.
The company's presence in Louisville is significant, with its appliances found in half of all U.S. homes. As a leading U.S. manufacturer of home appliances, GE Appliances has a strong history of innovation, including the invention of the self-clean oven and the recently launched award-winning GE Profile Combination washer/dryer.
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Haier has the right to use the GE brand name until 2056
In 2016, General Electric (GE) sold its appliances division to the China-based company Haier. This was for a sum of $5.4 billion, and it was China's largest acquisition of an overseas electronics business. GE Appliances remains headquartered in Louisville, Kentucky, and operates as an independent unit.
A Facebook meme circulated in late 2020 and early 2021 that claimed General Electric was being sold to a Chinese company. This was fact-checked and found to be false. The figure of $5.4 billion referred to the sale of GE's appliances division, not the entire company.
As part of the transaction, Haier entered into a long-term agreement with GE to continue using the GE Appliances brand. This agreement allows Haier to use the GE brand name until 2056.
This deal was beneficial to both parties, as Haier was committed to growing the business globally, and GE Appliances is a well-established company with a talented team and state-of-the-art manufacturing facilities. The partnership also allowed Haier and GE to explore opportunities for joint collaboration in areas such as industrial internet, healthcare, and advanced manufacturing.
In summary, Haier's acquisition of GE Appliances was a significant deal that granted Haier the right to use the GE brand name until 2056. This agreement is part of a long-term strategic partnership between the two companies, which aims to enhance value for all stakeholders.
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The Facebook meme was shared by Hal Downing
In late 2020 and early 2021, a Facebook meme claimed that a Chinese company was set to purchase General Electric for a sum of $5.4 billion. The post, published by Hal Downing on December 23, 2020, read: "General Electric is being sold to a Chinese company for 5.4 billion dollars. Americans, are you concerned yet???". The meme was widely shared on social media and sparked discussions about the potential sale of the American company to a Chinese buyer.
The Facebook meme shared by Hal Downing is technically inaccurate. It is true that General Electric sold its appliances division, GE Appliances, to the China-based company Haier for $5.4 billion. However, this transaction occurred in 2016, before the 2016 U.S. presidential election, and involved the sale of a subsidiary, not the entire General Electric company. Haier acquired the rights to use the GE brand name until 2056 and continues to operate GE Appliances as an independent unit headquartered in Louisville, Kentucky.
Hal Downing's Facebook post appears to be politically motivated, with references to the inauguration of President-elect Joe Biden and conspiracy theories alleging connections between Biden, the Democratic Party, and China. Downing's other posts indicate a belief that "Democrats are owned by China" and that Biden's victory was due to "collusion" with China through the use of fraudulent ballots. These claims are baseless and have been categorized as conspiracy theories.
The circulation of the Facebook meme and the subsequent fact-checking efforts highlight the impact of social media on the spread of information, misinformation, and political beliefs. While the meme shared by Hal Downing contained inaccuracies, it sparked discussions and reactions from viewers, demonstrating the influence of social media in shaping public discourse and perceptions.
Overall, the Facebook meme shared by Hal Downing serves as a reminder of the importance of verifying information before sharing it online and the potential consequences of spreading misinformation, especially in politically charged contexts.
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Frequently asked questions
No, but in 2016, GE Appliances, a subsidiary of General Electric, was sold to the China-based company Haier for $5.4 billion.
GE Appliances is an American home appliance manufacturer based in Louisville, Kentucky. It manufactures appliances under several brands, including GE, GE Profile, Café, Monogram, Haier, and Hotpoint.
GE Chairman and CEO Jeff Immelt stated that they were "pleased to be selling [their] Appliances business to Haier, which is committed to growing the business globally." He added that "Haier has a good track record of acquisitions and of managing brands."
Haier is a China-based company that has a stated focus on growing in the U.S. and investing in the U.S. market.
No, the sale of GE Appliances to Haier was announced and completed in 2016, before the 2016 U.S. presidential election and long before Joe Biden announced his intention to run for president in 2020.
