China has doubled down on efforts to revitalize domestic consumption by extending its consumer goods trade-in subsidy program through 2025, with 300 billion yuan ($41.84 billion) allocated in treasury bonds to support the initiative. The program, which offers rebates for replacing outdated appliances, vehicles, and electronics, has already driven 1.1 trillion yuan in sales this year, according to government data.
Central authorities have disbursed 162 billion yuan to local governments in the first half of 2025, with additional quarterly payments planned. Local administrations must match funds at a 9:1 ratio while tailoring programs to regional needs – from Beijing's expanded smart home appliance rebates to Shandong's streamlined car trade-in process.
"The policy accounts for over half of our daily smartphone sales," said Wu Zhirong, a Beijing-based Oppo store manager. National Bureau of Statistics figures show May sales of household appliances surged 53% year-on-year, with communication devices up 33%.
Experts highlight the program's dual economic and environmental benefits. "Higher subsidies for energy-efficient products are driving sustainable consumption patterns," noted Peking University's Wang Hao. The National Development and Reform Commission (NDRC) reports 175 million direct subsidy payments to consumers as of May 31.
With provinces like Shanghai combining national and municipal discounts, and Sichuan enhancing implementation measures, analysts predict broader industrial impacts. Central University of Finance and Economics professor Yao Dongmin stated: "This isn't just about immediate sales – it's accelerating product upgrades and green technology adoption."
The Ministry of Commerce confirms 2025 trade-in sales have already surpassed 2024's total, suggesting strong momentum as China targets long-term consumption growth. Future expansions could include sporting goods and other sectors to meet evolving consumer demands.
