BEIJING, Jan. 9 (Xinhua) -- China announced Wednesday a raft of measures to expand the scope of the consumer goods trade-in program amid a drive to boost domestic demand and spur economic growth.
China will expand the number of home appliance categories eligible for government subsidies from eight in 2024 to 12 in 2025, Zhao Chenxin, deputy head of the National Development and Reform Commission (NDRC), told a press conference.
Microwaves, water purifiers, dishwashers and rice cookers will be added to the trade-in list for home appliances, according to a guideline unveiled by the NDRC and the Ministry of Finance Wednesday.
In response to actual needs, the number of air conditioners eligible for subsidies per consumer will be increased from one to three, Zhao said.
Consumers will be able to enjoy subsidies of up to 500 yuan (about 70 U.S. dollars) apiece when purchasing digital products such as mobile phones. A broader range of passenger vehicles will also be added to the trade-in program, according to the guideline.
Li Gang, an official with the Ministry of Commerce (MOC), said expansion of the trade-in scheme will help stimulate consumer spending and boost domestic demand. All enterprises, domestic or foreign-funded, private or state-owned, are welcome to participate in the scheme, he said.
To ensure the delivery of subsidies, the central government earmarked 81 billion yuan for the consumer goods trade-in program this year, said Fu Jinling, an official with the Ministry of Finance.
For equipment upgrades, China will expand coverage of subsidies to areas including electronic information and protected agriculture, with focus on high-end, intelligent and green equipment, Zhao said.
March 2024 saw the launch of 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.
At the Central Economic Work Conference in early December, the country's policymakers highlighted the need to vigorously boost consumption, improve investment efficiency, and expand domestic demand on all fronts.
China will increase the issuance of ultra-long special treasury bonds and continue to support the implementation of the equipment upgrades and consumer goods trade-in programs, according to the conference.
At Wednesday's press conference, Zhao said the total amount of funds raised through ultra-long treasury bonds for these two programs will see a significant increase this year compared with that of 2024.
The first batch of funds has already been allocated to ensure that subsidies are available to consumers for the New Year's Day and Spring Festival holiday, according to Zhao.
Last year, these two programs have produced "visible effects," as they have spurred investment and consumer spending, promoted green transition and improved people's livelihoods in the country, Zhao said.
MOC data showed that the trade-in scheme has boosted sales of automobiles by 920 billion yuan in 2024, and that of home appliances by 240 billion yuan.
High-tech and energy-efficient products have gained greater popularity under the programs, facilitating transition of related industries, Li said.
MOC data showed that new energy vehicles accounted for over 60 percent of the new cars bought under the trade-in initiative in 2024, while sales of products certified with the highest energy-efficiency level contributed to over 90 percent of sales revenue under the home appliance trade-in scheme. ■