Posted on 15 Mar 2024
Following the Chinese government's proposal during a meeting in late February to further promote large-scale equipment upgrades and trade-in programs for consumer goods, the State Council issued an action plan on March 13 outlining specific directions and requirements for this initiative.
According to the plan, by 2027 investment in equipment across various sectors throughout China including industry, agriculture, construction, and education is projected to grow by more than 25% compared with 2023 levels. The increased funds will accelerate the expansion of advanced production capacity in these industries, it noted.
During last year, the country's total investment in equipment in these key sectors was around Yuan 4.9 trillion ($691 billion), the State Council disclosed.
At a meeting of China's Central Commission for Financial and Economic Affairs chaired by President Xi Jinping on February 23, it was stressed that the acceleration of equipment upgrading and replacement is an important measure to promote high-quality development in the country, as Mysteel Global reported.
Over 2023-2027, the number of End of Life Vehicles suitable for scrapping is estimated to increase by approximately 100%, while transactions involving second-hand vehicles are expected to grow by 45%, and the quantity of discarded household appliances recycled is anticipated to rise by 30%, the plan listed.
By the end of 2023, the number of passenger cars in possession of consumers reached 336 million units in China, while there were more than 3 billion home appliances in use across households nationwide, according to the State Council.
The action plan emphasized that the government should introduce effective measures to encourage the replacement of vehicles and household appliances such as refrigerators, air conditioners, and TVs. "This will allow more high-quality and durable consumer goods to enter the lives of residents," it said.
Moreover, it proposed that continuous efforts should be made to improve the recycling network for discarded products, and standardized trading markets should be established for the trading of second-hand goods, so that the country can see an adequate recycling of resources.
To achieve the above goals, the government needs to further optimize industrial standards and strengthen financial support for various sectors, according to the plan.
Source:Mysteel Global
