Since March, the Chinese mainland government has launched a series of large-scale trade-in policies to expand consumption and boost domestic demand. These initiatives provide financial subsidies to encourage the purchase of automobiles, home appliances, and support housing renovations, while promoting the recycling of used products. Compared to previous consumption promotion policies, this year’s approach is broader in scope, stronger in intensity, and more focused on green consumption. The policies are set to guide residents’ consumption habits, promote industrial upgrades, foster green development, and enhance the high-quality development of the economy.
Consumer spending has been significantly stimulated by the trade-in policy, bringing fresh opportunities to the automobile and home appliance industries. Latest government data shows that from April to July, sales of new energy vehicles increased by 34.8% year-on-year, an increase of 7.3 percentage points compared with March. Sales of used vehicles rose by 7.2%. Revenue from household appliances such as refrigerators and televisions grew by 4.4% and 3.5% year-on-year, respectively, marking an increase of 4.8 and 10.1 percentage points from March. Retail sales revenue from furniture and sanitary ware rose by 9.9% and 14.3% year-on-year, with growth rates 9.3 and 24.9 percentage points higher than in March. The trade-in program is estimated to directly expand the consumer market by one trillion RMB, significantly boosting domestic demand and promoting the development of related industries.
The trade-in policy directly responds to the demand for upgraded consumption and reflects a profound change in consumer attitudes. The current consumption promotion policy places greater emphasis on greenness, intelligence, and high-end products to meet residents’ consumption goals. For example, the new round of trade-in programs subsidizes green and energy-saving home appliances at a rate of 5% higher than general home appliances, reaching 20%. It also focuses more on subsidies for new energy vehicles and low-emission fuel passenger cars. From April to July, sales revenue of wearable smart devices and smart vehicle equipment increased by 35.2% and 3.4% year-on-year, respectively.
The implementation of these policies not only stimulates immediate consumption but also sets the stage for long-term sustainable development. By promoting green and intelligent products, the policies align consumer behavior with environmental goals, fostering a culture of sustainability. This shift not only benefits the domestic market but also positions the Chinese mainland economy as a leader in green development on the global stage.
Reference(s):
'Trade-in' for new space for consumption and development in China
cgtn.com
