China's latest trade-in initiative is igniting a wave of consumer enthusiasm across the nation. Shoppers looking to upgrade their furniture, household appliances, or vehicles are taking advantage of significant discounts and government subsidies, both online and in physical stores.
Launched in February, the trade-in program initially focused on equipment renewals and upgrades but has since expanded to include consumer products. This expansion aims to stimulate domestic consumption and support the growth of multiple industries.
According to data from the Ministry of Commerce, the program has boosted market confidence, particularly in the automotive sector. In September, domestic passenger vehicle retail sales reached 2.112 million units, marking a 4.5% year-on-year increase. In the first three weeks of October, sales surged by 16% compared to the previous year and by 12% over September, as reported by Li Gang, director general of the Department of Market Operation and Consumption Promotion.
By October 24, over 2.83 million vehicle upgrade subsidy applications had been submitted nationwide, with demand continuing to grow. The home appliance market has also seen a revival, with 14.203 million consumers purchasing 20.726 million units of eligible appliances by October 25, generating sales revenue of 95.07 billion yuan. Additionally, consumers spent approximately 19 billion yuan on subsidy-eligible products for home renovations.
The State Council implemented the trade-in program in March, and the National Development and Reform Commission (NDRC) along with the Finance Ministry allocated around 300 billion yuan ($42.5 billion) in ultra-long-term special government bond funds to support it. The program's success has led to its expansion from industrial equipment to areas such as home appliances, vehicles, and real estate.
Reference(s):
China's large-scale trade-in program ignites market enthusiasm
cgtn.com
