Across the Chinese mainland, excitement is building as consumers seize the opportunity to upgrade their homes and lifestyles. From bustling city centers to rural towns, shoppers are capitalizing on substantial discounts and government subsidies to purchase new furniture, household appliances, and vehicles.
This surge in consumer activity is the result of China’s new wave of large-scale trade-in programs launched this year. Focusing on equipment renewals and upgrades, as well as consumer products, the initiative aims to stimulate domestic consumption and invigorate multiple industries.
According to data from the Ministry of Commerce, the program has significantly boosted market confidence, particularly in the automotive sector. In September, domestic passenger vehicle retail sales soared to 2.112 million units, marking a 4.5 percent increase year on year. The momentum continued into October, with the first three weeks seeing a 16 percent rise in sales compared to the previous year and a 12 percent increase over September. Li Gang, director general of the Department of Market Operation and Consumption Promotion of the Ministry of Commerce, highlighted these trends at a news briefing on October 25, noting that over 2.83 million vehicle upgrade subsidy applications had been submitted nationwide by October 24, and demand is still climbing.
The policy has also breathed new life into the home appliance market. By October 25, more than 14 million consumers had purchased over 20 million units across the eight eligible appliance types, contributing to sales revenue of 95.07 billion yuan. In addition, consumers invested in approximately 6.3 million subsidy-eligible home renovation products, generating an additional 19 billion yuan in sales revenue.
First introduced in February, the national trade-in program was swiftly implemented following arrangements by the State Council in March. In June, the National Development and Reform Commission (NDRC) and the Ministry of Finance announced plans to allocate around 300 billion yuan ($42.5 billion) through ultra-long-term special government bond funds this year to support the initiative. The program was subsequently expanded from industrial equipment to encompass home appliances, vehicles, and even real estate.
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China's large-scale trade-in program ignites market enthusiasm
cgtn.com
