A Sony TV, once priced at over 10,000 yuan, symbolized status and quality for Chinese households. Today, the Japanese giant has handed over its home entertainment business to a Chinese company—TCL.
On January 20, 2026, TCL Electronics announced on the Hong Kong Stock Exchange that it had signed a memorandum of understanding with Sony to form a joint venture. The new company will operate TV and home audio businesses globally under an integrated model. With TCL holding 51% and Sony 49%, the fate of Sony’s once-iconic TVs in China will now be led by a Chinese firm.
Sony’s Rise and Decline
In the 1980s and 1990s, Japanese TV brands such as Sony, Panasonic, Toshiba, and Sharp dominated the Chinese market. Sony’s Trinitron technology set the standard for picture quality, and 29-inch TVs priced above 10,000 yuan were highly sought after. The “Made in Japan” label created a lasting premium, allowing Sony to enjoy over a decade of brand loyalty in China.
However, by the early 2000s, Chinese brands like TCL, Hisense, and Changhong rose rapidly, leveraging low costs to gain market share. In the 2010s, the proliferation of smartphones and tablets weakened TV’s central role in home entertainment. Sony’s insistence on high-end positioning and avoidance of price competition gradually eroded its market relevance and brand trust, compounded by customer complaints about reliability.
Strategic Collaboration: TCL and Sony
This joint venture represents a fusion of “Chinese efficiency” with Sony’s legacy ecosystem. Sony contributes brand reputation and technological heritage; TCL provides efficient manufacturing, cost control, and global distribution. With controlling 51% ownership, TCL has strategic decision-making power, overseeing the entire value chain from product design to global sales.
Sony retains 49% to stay involved and benefit from TCL’s cost and supply chain advantages, while TCL secures control and access to Sony’s technology and brand. This collaboration signals a major shift in global consumer electronics power—Japan’s legacy brands now rely on Chinese firms to sustain their market presence.
China’s Manufacturing Comeback
Since the 1996 “Black March” TV price war, Chinese brands challenged foreign dominance. Hisense developed the proprietary “Xinchip,” and TCL invested in the CSOT LCD panel line, gaining core technological capabilities. By 2025, Chinese brands led the global TV market: TCL, Hisense, and Xiaomi together held 31.3% of worldwide shipments, surpassing Samsung and LG at 28.4%.
Through innovation and market responsiveness, Chinese companies transitioned from “price followers” to global technology leaders. The Sony-TCL partnership is the latest chapter in this industrial succession.
