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More policy support for trade-ins

Measures giving China confidence, capability to minimize uncertainties

By TAN GUOLING | CHINA DAILY | Updated: 2025-06-28 08:25
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A staff member (L) introduces the policies related to car purchase subsidies to consumers at a 4S store in Chongqing, Southwest China, Oct 17, 2024. [Photo/Xinhua]

China will further ramp up policy support and reinforce funding for large-scale equipment renewals and consumer goods trade-in programs to boost consumption and stabilize economic growth, officials and experts said.

Amid a complex and challenging external environment, China's economy is operating on a generally stable trajectory, with policymakers implementing more proactive macroeconomic policies and accelerating measures to stabilize employment and growth, according to the National Development and Reform Commission.

The World Bank and the Organization for Economic Cooperation and Development have recently revised down their global growth forecasts by 0.4 and 0.2 percentage points, respectively, while maintaining largely stable projections for China's economic growth.

"With new measures being rolled out successively, we have the confidence and capability to minimize uncertainties and adverse impacts from external shocks, thereby promoting sustained and sound economic development," Li Chao, deputy director of the policy research office of the NDRC, said in Beijing on Thursday.

Funding support for equipment renewal through ultra-long special treasury bonds totals 200 billion yuan ($27.9 billion) this year. The first batch of approximately 173 billion yuan has been allocated to about 7,500 projects across 16 sectors, under the principle of dual review by local and central governments, according to NDRC.

The application for the second batch of funds is currently undergoing concurrent project review and selection, Li added.

"The NDRC will step up whole-process management of large-scale equipment renewal projects, accelerate project construction, enhance fund oversight and roll out discounted-interest loan policy to further reduce financing costs for business entities," she said.

When it comes to the consumer goods trade-in program, Li said that funding support from ultra-long special treasury bonds totals 300 billion yuan and the third batch of subsidies will be disbursed in July, after the first two batches totaling 162 billion yuan were disbursed in January and April, respectively.

The NDRC will coordinate with relevant agencies to formulate sector-specific monthly and weekly implementation plans for central government subsidies, ensuring orderly year-round execution of the consumer goods trade-in program, Li noted.

"As a key policy instrument, the timely disbursement and effective deployment of central government subsidies in the market demonstrate policy stability and sustainability," said Zhou Mi, a researcher at the Chinese Academy of International Trade and Economic Cooperation.

Regarding the development of related industries, Zhou said that reinforced policy support will deliver more sustainable assistance to the production and supply ecosystems of consumer goods.

"Enhanced optimization of equipment renewal projects will help lower financing costs for relevant companies, advance technological upgrades and high-end equipment adoption among enterprises, boosting innovation in emerging sectors," said Wang Peng, a researcher at the Beijing Academy of Social Sciences.

For consumers, Wang said that streamlined subsidy procedures, expanded product choices and balanced fund disbursement will lower the cost of upgrading their consumer goods.

"Driven by the dual engines of investment and consumption, the measures will propel industrial upgrading and green transition, optimizing China's economic structure," Wang said.

 

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