A 21 percent profit increase in the hectic year of 2008 probably looks like a dream out of reach for companies like Whirlpool Corp., Electrolux AB, General Electric Co.'s appliance division and LG Electronics, as the home appliances market in North America continues the two-year-long downward trend.

The latest data from the Association of Home Appliance Manufacturers in Washington shows that total shipments of all major appliances in the first 11 months of 2008 were down 8.7 percent, to 62.8 million units.

For China's largest appliance maker Haier, however, the 21 percent increase in profit is a dream coming true. While the company has made a solid effort to crack overseas markets -- including investment in production facilities in America, the Chinese home market -- the Chinese rural market, to be exact -- is sailing Haier through the global economic storm.

The real boost comes from Beijing's subsidy for rural consumers to purchase home appliances. China's central government generously offers to 180 million rural households a 13 percent rebate on purchases of televisions, refrigerators, washers, mobile phones, air conditioners, water heaters, computers, motorcycles, etc.

In the first phase of the rebate program (from December 2007 through October 2008), Haier sold 1.2 million units of home appliances/electronics (there is no product-specific breakdown data available), accounting for 42 percent of the products sold through the program. The second phase started on December 1, 2008.

With its huge success in selling to rural residents, Haier announced earlier this month that it had overtaken Whirlpool and LG Electronics as the world leader in refrigerator sales.