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China's refrigeration equipment mainly uses substances such as artificial chlorofluorocarbons (CFCs) as refrigerants and sprays to destroy the ozone layer, and is therefore banned by international conventions such as the Montreal Protocol and the Kyoto Protocol. Romania is a signatory to the above-mentioned agreement. The Romanian government enacted legislation in 2003 explicitly prohibiting the import of products using this refrigerant, but with little success.
Other problems faced by the Romanian refrigeration market include the Luo government's licensing system for refrigeration and air-conditioning equipment companies, the need for workers to obtain professional employment licenses, and the inconsistency with the EU's existing regulations; excessive tariffs and the proliferation of used goods.
In 2005, the total refrigeration and air-conditioning market in Romania exceeded 150 million euros. According to Luo’s experts, the Romanian refrigeration and air-conditioning market will grow significantly in the next 10 years, driven by market demand, especially the rapid growth of the retail and food industries.
Ion Maracine, general manager of Romanian refrigeration equipment manufacturer Midal, announced that the Romanian refrigeration market is currently threatened by non-ecological refrigerants that are restricted by international conventions. Due to the very low prices of refrigeration equipment and air conditioners produced in China, they are able to meet the needs of Luo consumers whose purchasing power is still low, resulting in the influx of such products and flooding the market.