China has unveiled new initiatives aimed at boosting consumer spending and accelerating industrial upgrades over the next few years. At a recent media conference organized by the National Development and Reform Commission and the Finance Ministry, officials announced the expansion of the country's old-for-new exchange program and equipment renewal policies slated for 2025.
One of the key changes includes broadening the number of household appliance categories eligible for the trade-in subsidy program, increasing from eight last year to 12 for 2025. Consumers can now receive a subsidy of up to 20 percent of the sales price per eligible item, making it more attractive to replace outdated appliances.
Additionally, the updated policies extend funding support for equipment replacement beyond household appliances to include sectors such as digital technology, industrial safety, and agricultural facilities. This strategic move is expected to not only stimulate consumer purchases but also support critical areas of industrial growth.
The announcement has been well-received by the stock market. According to an equity market overview on Baidu, shares of large household appliance manufacturers, e-commerce companies, and general retailers saw an uptick following the policy release.
China Central Television (CCTV) reported impressive preliminary results from existing trade-in initiatives. By mid-December, the old-for-new exchanges program had facilitated the replacement of 5.8 million vehicles, with several automakers achieving record sales figures. Over 33 million consumers purchased more than 52 million items through the program, while more than two million sets of outdated equipment were renewed.
In total, the old-for-new exchanges program alone has driven over one trillion yuan ($144 billion) in sales, significantly fueling both consumer consumption and investment. These efforts not only support immediate economic growth but also contribute to the country's green transition by promoting the adoption of more energy-efficient and modern equipment.
\"China's expanded trade-in and equipment renewal policies are set to play a crucial role in shaping the economic landscape for 2025, fostering both consumer confidence and industrial innovation,\" concluded officials at the conference.
Reference(s):
cgtn.com
