China expanded the scope of consumer trade-in scheme for home appliances and will give more subsidies for digital purchases this year, in efforts to revive sluggish domestic demand, an official policy document showed on Wednesday.
Domestic Incentives
Microwave ovens, water purifiers, dish-washing machines and rice cookers will be included in the trade-in scheme for home appliances this year, according to a document issued by the top state planner and the finance ministry. Cellphones, tablet computers, smart watches and bracelets under 6,000 yuan could get 15% subsidies.
The statement did not specify the total cost of the incentives, however, a finance ministry official said at a press conference on Wednesday that the central government had so far allocated 81 billion yuan ($11.05 billion) for consumer goods trade-ins to support consumption for 2025.
China last year apportioned about 150 billion yuan from the 1 trillion yuan special treasury bonds issuance to subsidise replacements of old appliances, cars, bicycles and other goods. Officials said that campaign “had achieved positive effects.”
The campaign resulted in 920 billion yuan in auto sales and 240 billion yuan of home appliances sales in 2024, Li Gang, an official from the commerce ministry said at the same press conference.
Reviving Economy
The new measures are part of a broader plan to spur growth in the world’s second-largest economy in 2025, where a severe property crisis has eroded consumer wealth and hurt household spending.
Top Chinese leaders have vowed to “vigorously” boost consumption and expand domestic demand “in all directions” this year.
Reuters reported last week that millions of government workers across China were given wage increases, as part of efforts to boost consumption.
($1 = 7.3314 Chinese yuan)
(With inputs from Reuters)
