China plans to increase funding support for consumer goods trade-in

China plans to raise fund appropriations from selling the ultra-long special treasury bonds to support consumer goods trade-in and large-scale equipment upgrading programs in 2025, senior Chinese officials said on Wednesday.

The specific amount is expected to be announced during this year’s two sessions in March. Under the two programs, the country will broaden the range of goods eligible for government subsidies in 2025, the officials noted. 

Chinese central government has pre-allocated 81 billion yuan ($11.05 billion) in funds to continue to carry out the consumer goods trade-in program and ensuring seamless implementation of the policy in individual localities in 2025, Fu Jinling, an official from the Ministry of Finance, said at a press briefing held by the State Council Information Office on Wednesday.

In terms of specific consumer goods trade-in policy in 2025, Zhao Chenxin, deputy head of the National Development and Reform Commission (NDRC), the top economic planner, noted that the number of home appliance categories eligible for trade-in subsidies will be increased from eight to 12 this year, and taking into account the actual needs of households, the maximum subsidy for air conditioners per consumer will rise from 1 unit to 3 units. In particular, subsidies for purchasing new mobile phones and other digital products will be implemented to meet public expectations.

China will also strengthen support for large-scale equipment upgrading in key sectors this year, seniors officials said.

Building on the existing loan support for industries including new energy, transportation, logistics, as well as environmental infrastructure, the supportive policy will be broadened to favor other sectors such as electronic information, workplace safety, and agriculture as well in 2025, while also promoting the use of high-end, intelligent, and green equipment.

Chinese officials noted at the press briefing that the two programs have played an important role in driving investment growth in 2024. 

It is estimated that under the two programs, the total number of equipment updating in key areas exceeded 20 million units last year, NDRC said. 

And more than 36 million Chinese consumers have purchased 56 million units of home appliances in eight categories, driving a total sale of 24 billion yuan in 2024, according to data released by China’s Ministry of Commerce.

More than 6.5 million outdated vehicles were scrapped and replaced nationwide in 2024. Meanwhile, the total sales of new-energy vehicles in China reached 11 million units last year, according to Zhao.