China's push to invigorate consumer spending has led to an impressive response from the market, with over 20 million consumers applying for electronic products trade-in subsidies in just three weeks since the government launched this pro-consumption initiative. According to data from the Ministry of Commerce, more than 20 million individuals have taken advantage of the program to purchase over 25 million units of electronic products, including smartphones.
Starting on January 20, the trade-in subsidy program provides consumers with up to 500 yuan (approximately $69.7) when buying digital products. This generous incentive has been a significant driver in consumer behavior, as evidenced by the surge in sales. Card payment giant China UnionPay reported over 6.27 million subsidized transactions during the initial period, amounting to a total sales value of 20.58 billion yuan.
The impact of these incentives was particularly notable in mobile phone sales, which saw a staggering 74% increase in volume and a 65% rise in value on a weekly basis leading up to the Spring Festival on January 29. This uptick illustrates the program's effectiveness in stimulating the electronics market just in time for one of China's most significant holidays.
Looking ahead, China is set to expand its consumer goods trade-in program with an action plan launched in March 2024. This initiative aims to promote large-scale equipment renewal and trade-in of consumer goods, further boosting domestic consumption and supporting economic growth. Official data from the previous year highlighted the success of trade-in schemes, with sales of automobiles surging by 920 billion yuan and home appliances by 240 billion yuan.
China's strategic approach to encouraging consumer spending through trade-in subsidies demonstrates a commitment to strengthening its domestic market and sustaining economic momentum.
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Over 20 million Chinese apply for electronics trade-in subsidies
cgtn.com
