CBN丨China to expand scope of consumer goods trade-ins

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China will expand the scope of consumer goods trade-in program, and increase funding support for equipment upgrades through loan interest discounts, the country's economic planner said on Wednesday, as the world’s second-largest economy is deepening efforts to boost domestic demand.

The total scale of the ultra-long-term special treasury bonds to support the replacement of existing equipment and devices will “increase significantly” compared to last year, the National Development and Reform Commission said on Wednesday.

Support will be expanded to cover more areas including electronic information and protected agriculture, with focuses on high-end, intelligent and green equipment, it said.

In 2024, China allocated 300 billion yuan out of the proceeds from the ultra-long-term special treasury bonds to subsidize the trade-ins.

To ensure the delivery of subsidies, the central government has recently earmarked 81 billion yuan for the consumer goods trade-in program this year, said the Ministry of Finance.

Meanwhile, in response to actual needs, the number of air conditioners eligible for subsidies per consumer will be increased from one to three.

The state economic planner also introduced that home appliances enjoying subsidies for trade-in, increased from 8 categories last year to 12 categories, with a maximum subsidy of 20 percent of the sales price for a single piece.

The NDRC also repeated that the subsidies for new digital products such as smartphones will be rolled out again, to “especially meet the public demand”.

Each consumer will be offered a subsidy of 15 percent of the selling prices when buying smartphones, tablets and smart bracelets, while the eligible products should not be sold higher than 6,000 yuan per piece. Each consumer is allowed to only one piece of each eligible product type, with the subsidy of up to 500 yuan per device.

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