China's appliances rebate program is not exclusive to domestic brand owners. In fact, there are 122 global manufacturers -- including Whirlpool -- participating in the current phase of the program.

Benton Harbor, Michigan-based Whirlpool has had a roller-coaster journey in China. In the 1990s, it had one failed joint venture after another and lost millions of dollars. Besides strategic and managerial mistakes, the company also had a messy time positioning its products.

Chinese magazine Global Entrepreneur described the back-and-forth swings in a recent report: "Whirlpool initially appeared in the Chinese market as a high-end brand. In 2003, the company still didn't establish a solid foothold. But it decided to target Tier 3 and Tier4 markets [small cities] as well. Whirlpool rolled out three series and 30-plus products, opened hundreds of retail outlets across the country and its sales force neared 3,000. Whirlpool lost its high-end image during this process. In 2007, the company decided to exit low-end markets and adjust brand positioning. It was aimed to 'grab 10-15 percent of the high-end washer market.' However, Whirlpool is now selling washers in the rural-focused rebate program."

The rebate program set price ceilings for products: 2,000 yuan (US$292) for a TV set, 2,500 yuan (US$366) for a refrigerator/freezer, 1,000 yuan (US$146) for a cell phone, and 2,000 yuan (US$292) for a washing machine. Sony claimed that none of its products meets the price criteria and therefore is not participating.

Is Whirlpool giving the rural market another try because of slow sales in urban areas? How will the rebate program affect Whirlpool's 2009 sales in China? Unfortunately, like many U.S. firms, Whirlpool doesn't provide country-specific sales data.

What we do know is that Fitch Ratings recently lowered Whirlpool's ratings to one notch above "junk" status and Standard & Poor's and Moody's Investors Service cut credit ratings on Whirlpool to one notch above speculative status.

"We won't comment on the specific action taken by Fitch, although it's not terribly surprising given the current state of the industry," Whirlpool spokeswoman Jill Saletta said in an email to Reuters.