Since March, China has rolled out extensive trade-in policies aimed at boosting domestic consumption and supporting green development. These initiatives offer financial incentives for upgrading automobiles, home appliances, and housing, while promoting the recycling of used products.
Compared to previous efforts, this year's policies are more comprehensive, intense, and environmentally focused. The government estimates that the program has the potential to expand the consumer market by one trillion RMB, significantly stimulating demand and fostering industrial upgrades.
Recent data highlights the success of these measures. From April to July, sales of new energy vehicles soared by 34.8% year-on-year, surpassing March's growth by 7.3 percentage points. Used vehicle sales also saw a 7.2% increase during the same period.
The home appliance sector benefited as well, with refrigerator and television sales up by 4.4% and 3.5% year-on-year, marking substantial growth compared to March. Additionally, the furniture and sanitary ware markets experienced impressive gains of 9.9% and 14.3%, respectively.
The trade-in policies have shifted consumer behavior towards greener, smarter, and higher-end products. For instance, the latest round of subsidies offers a 20% incentive for green and energy-saving home appliances, which is a 5% increase compared to general appliances. Similarly, new energy vehicles and low-emission fuel cars receive enhanced support.
Sales revenue from wearable smart devices rose by 35.2% year-on-year, and smart vehicle equipment sales grew by 3.4%, reflecting the evolving preferences of consumers seeking sustainable and intelligent products.
This comprehensive approach not only boosts consumption but also paves the way for high-quality economic development in China.
Reference(s):
'Trade-in' for new space for consumption and development in China
cgtn.com
