China will significantly increase the issuance of ultra-long special treasury bonds in 2025 to support large-scale equipment upgrades and consumer goods trade-in programs, a government official announced at a press conference in Beijing on Friday.
Yuan Da, deputy secretary-general of the National Development and Reform Commission (NDRC), stated that the government plans to expand funding support to additional sectors, including electronic information, production safety, and agricultural facilities. Consumers will receive subsidies to purchase digital products such as mobile phones, tablets, and smartwatches and wristbands.
“We aim to provide stronger financial backing for key industries and encourage consumers to upgrade their devices,” Yuan said. “This initiative will not only bolster investment but also stimulate household consumption.”
The government will also increase subsidies for upgrading new energy city buses, batteries, and agricultural machinery, while enhancing support for renewing home decoration-related consumer goods.
In March 2024, China launched an action plan to promote large-scale equipment renewal and trade-in of consumer goods as part of efforts to boost domestic demand and support economic growth.
Yuan highlighted that over the past year, these programs have effectively strengthened investment, boosted household consumption, and accelerated the green transition amid booming sales of new energy vehicles and energy-efficient household appliances.
In the first 11 months of 2024, national investment in the purchase of equipment and appliances increased by 15.8 percent year on year, contributing 65.3 percent to the country’s total investment growth.
Notably, in the trade-in programs, more than 60 percent of consumers chose to buy new energy vehicles, pushing China’s market penetration rate of new energy passenger vehicles to over 50 percent for six consecutive months.
“The positive momentum demonstrates the effectiveness of our policies in promoting sustainable growth,” Yuan added. “We will continue to implement measures that support both the economy and the environment.”
Reference(s):
China to boost support for equipment upgrades, goods trade-in programs
cgtn.com
