Chinese white-goods maker Qingdao Haier is considering a bid for General Electric's appliance business and has begun to approach investment banks to advise it, according to a person familiar with the matter.

Haier is one of a large group of potential bidders across the globe with an interest in acquiring the GE operations, which could fetch up to $7bn.

People familiar with the process said that white-goods makers from South Korea, Germany, Turkey, Mexico, Sweden and Italy, as well as private equity groups, were looking at the business, which had sales of $7.2bn last year but has long been one of the least profitable parts of GE.

In 2005, Haier teamed up with private equity firms Bain Capital and Blackstone to bid for another American icon, the appliances group Maytag, but lost that contest to Ripplewood Holdings.

Since that time, manufacturers in China and India have bid for manufacturing companies in the US, seeking to marry their low-cost production facilities with US brands and distribution.

Chinese makers of white goods and consumer electronics have been able to compete not only on price but also on quality with rivals in Korea and Japan. At the same time, money has become much less of an obstacle for Chinese and Indian groups than just a few years ago.

When Haier first looked at Maytag, it lacked deep pockets and depended on partners to finance the offer. But now the Chinese currency has appreciated and the Chinese government is encouraging companies to invest abroad, in part to offset its huge current account surplus.

Executives at China Investment Corp say that one of their mandates is to help finance such moves abroad. Banks such as China Development Bank could also be tapped to help finance a bid and even take a slice of equity in any deal.

While Haier no longer needs the financial strength of a partner, management issues remain a weakness for Chinese groups.

That suggests that Haier may consider a strategic alliance with a local US partner. Chinese computer maker Lenovo turned to private equity firms General Atlantic and TPG for help in melding diverse cultures after it bought the personal computer business of International Business Machines in 2005.

The timetable for the auction has not yet been determined.

GE declined to comment. Haier could not be immediately reached for comment.

Additional reporting from Julie MacIntosh in New York