Posted on 10 Jan 2025
China's central government will intensify efforts to expand the large-scale equipment upgrade and consumer goods trade-in program this year as this initiative proved to significantly boost domestic consumption last year, Mysteel Global learned from the State Council's policy briefing held on January 8.
"Currently under consideration are plans to increase funding for the program, expand the scope of subsidies, and optimize implementation mechanisms," said Zhao Chenxin, deputy head of the National Development and Reform Commission (NDRC).
For example, the Ministry of Finance (MoF) has already allocated Yuan 81 billion ($11.1 billion) to support the trading-in of consumer goods this year, prioritizing those regions that performed strongly when implementing the scheme last year, Zhao remarked.
The People's Bank of China is also planning to set aside a special loan quota of Yuan 100 billion to help tech-based small and medium-sized enterprises secure their first loans, aiding in research, innovation, and technological transformation, he added.
Moreover, the equipment upgrade program will apply to products and machinery from more sectors such as electronic information, workplace safety, and facility-based agriculture this year, according to the MoF's plans. Digital products will be added as a new category benefitting from trade-in subsidies for household appliances, and subsidies for new energy vehicles and power battery replacements will be raised, the ministry also noted.
As the policy advances, the scrapping and elimination of outdated products and equipment will accelerate, requiring a more efficient recycling system for all industries, NDRC acknowledged.
Driven by the government's generous subsidies, more than 2.9 million vehicles were scrapped and replaced with new ones by consumers last year, while sales of household appliances maintained strong growth in the second half of the year, according to data released by the Ministry of Commerce.
The NDRC also announced plans to continue allocating ultra-long-term special government bonds to support high-level recycling projects for ferrous and nonferrous metals, as well as for obsolete equipment. Furthermore, special funds will be provided for the recycling and processing of old household appliances and retired power batteries.
Source:Mysteel Global
