China Boosts Consumer Confidence with Subsidized Trade-Ins

China plans to expand consumer trade-ins for home appliances and digital purchases by offering new subsidies to stimulate domestic demand. Products like microwaves, smartphones, and tablets are included in the scheme, backed by an 81 billion yuan government allocation. This initiative aligns with China's broad economic recovery strategy.

China is making strategic moves to invigorate its economy, with plans to extend consumer trade-ins to more home appliances and offer increased subsidies for digital purchases. This policy initiative, unveiled in an official document on Wednesday, aims to stimulate sluggish domestic demand.

The trade-in program will now include items like microwave ovens, water purifiers, dish-washing machines, and rice cookers. Digital devices such as cellphones, tablets, and smart wearables priced under 6,000 yuan are eligible for a 15% subsidy. Although the overall cost of the incentives was not disclosed, a finance ministry spokesperson noted that 81 billion yuan has been allocated thus far for this purpose, supporting consumption goals through 2025.

Building on last year's campaign, which utilized funds from special treasury bonds to replace old consumer goods, the government witnessed substantial sales boosts in the auto and appliance sectors. This new wave of support is part of China's larger strategy to energize its economy amidst a property market crisis that has dampened household spending power. Efforts also include wage increases for millions of government workers to further boost consumption.

(With inputs from agencies.)