Production of air-conditioners, refrigerators and washing machines accounted for 70%, 50% and 40% of the world total respectively.
Last year, the total industrial output of the sector in China was worth 1.07 trillion yuan ($169 billion) -- 4.7 times the amount in 2001 when the country became a member of the World Trade Organisation, the report said.
Though Chinese brands faced fierce rivalry from overseas competitors, the report said the Chinese firms withstood the intense competition by making cost-effective products, seeking overseas acquisitions and promoting home-grown brands through creating overseas operations.
The efforts paid off as Chinese exports of home appliances exceeded $46 billion last year. In 2002, such exports were worth $8.75 billion.