The Chinese government has expanded its product trade-in program, allowing consumers to receive discounts of up to 20% on new goods as part of efforts to stimulate the economy. The updated list now features items such as microwave ovens, dishwashers, rice cookers, and water purifiers.
Previously, the trade-in initiative included consumer electronics like televisions, smartphones, tablets, smartwatches, and electric vehicles. This program aims to address the challenges faced by the world’s second-largest economy, including sluggish consumer demand and a worsening property crisis.
On Wednesday, officials announced that 81 billion yuan (approximately $11 billion) has been allocated this year for the consumer goods trade-in scheme. China’s top economic planning body noted that the initiative, launched in March, has already shown “visible effects.”
According to the Ministry of Commerce, these policies have positively impacted sales of major items, including home appliances and automobiles. However, some economists are skeptical about whether these measures will significantly boost overall consumer spending.
Harry Murphy Cruise, head of China economics at Moody’s Analytics, commented, “The approach has had mixed success so far. While it has supported sales of certain goods, it hasn’t led to a significant increase in overall spending.”
As domestic economic challenges continue to mount, China is implementing additional strategies to bolster its economy. A recent high-level meeting emphasized the importance of robust efforts to enhance consumer spending.
Next week, China is set to unveil its economic growth figures for 2024, with expectations pointing towards a growth rate of around 5%.
