The Chinese mainland is set to significantly increase the issuance of ultra-long special treasury bonds in 2025, according to a government official at a press conference in Beijing on Friday. This move aims to support large-scale equipment upgrades and consumer goods trade-in programs as part of the broader strategy to boost domestic demand and sustain economic growth.
Yuan Da, deputy secretary-general of the National Development and Reform Commission (NDRC), announced that the government will broaden the scope of areas eligible for funding support. Key sectors include electronic information, production safety, and agricultural facilities, reflecting a targeted approach to modernize critical industries.
In a bid to stimulate consumer spending, subsidies will be provided for the purchase of three categories of digital products: mobile phones, tablets, and smartwatches and wristbands. Additionally, the government plans to increase subsidies for upgrading new energy city buses, batteries, and agricultural machinery, while also enhancing support for renewing home decoration-related consumer goods.
This initiative follows the March 2024 action plan, which was launched to promote large-scale equipment renewal and the trade-in of consumer goods. The program has already shown positive results, effectively shoring up investment, boosting household consumption, and accelerating the green transition. Notably, the sales of new energy vehicles and energy-efficient household appliances have seen a significant uptick.
In the first 11 months of 2024, national investment in the purchase of equipment and appliances increased by 15.8 percent year-on-year, contributing 65.3 percent to the country's total investment growth. In the realm of trade-in programs, over 60 percent of consumers opted to purchase new energy vehicles, pushing China's market penetration rate of new energy passenger vehicles to over 50 percent for the sixth consecutive month.
These measures reflect China's ongoing commitment to economic resilience and sustainable development, positioning the country as a leader in green technology and consumer innovation.
Reference(s):
China to boost support for equipment upgrades, goods trade-in programs
cgtn.com
