China is extending its consumer subsidy program to include a wider range of appliances and electronics, aiming to stimulate the economy amidst sluggish growth.
China has expanded a programme to subsidise consumers who trade in old appliances such as air conditioners and washing machines as policymakers strive to counter weak consumption in the world’s second-largest economy. The policy initiative, which was launched last year to encourage purchases of cars and home appliances, will now also include microwaves, rice cookers, dishwashers and water purifiers as well as smartphones and tablets costing less than Rmb6,000.
Consumers who trade in old goods will receive subsidies of 15-20 per cent, the National Development and Reform Commission, China’s state planner, said at a press conference on Wednesday in Beijing, where a finance ministry official said Rmb81bn ($11bn) would be allocated towards the programme in 2025. The scheme’s expansion follows calls for Beijing to do more to support consumer spending as growth momentum has slowed and a weak property sector continues to weigh on consumer and investor confidence. The government is “thinking about consumption and boosting consumption”, said Hui Shan, chief China economist at Goldman Sachs, who added the scheme was having a “pretty clear impact” on sale volumes. “The downside of such a policy is you are just pulling forward future demand,” she added. “If I’m going to replace my air conditioner once every 10 years, pulling the next few years of demand into now.” The trade-in scheme was initially launched last March with echoes of former US president Barack Obama’s “cash for clunkers” initiative, which allowed consumers to trade in old cars for new ones in the aftermath of the 2008 global financial crisis. Officials said a 2024 budget of Rmb150bn, funded through special government bonds, was used up by the end of the year. The commerce ministry said 36mn consumers used the scheme last year to buy Rmb240bn worth of home appliances, and that it drove Rmb920bn of car sale
CHINA CONSUMPTION SUBSIDIES ECONOMY POLICY
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
University of Arizona Health Sciences Expands School Asthma Inhaler Program with $3.4 Million GrantA University of Arizona Health Sciences-led program that provides schools with asthma inhalers to help students experiencing respiratory distress will be expanded and improved thanks to a $3.4 million grant from the National Heart, Lung and Blood Institute. The Stock Inhaler for Schools program, launched in 2017, aims to bridge the gap in access to life-saving medications for emergency respiratory distress during school hours. Arizona became the first state to implement and publish data on a stock inhaler program in 2020, setting a national example.
Read more »
Cybertruck Bomber Left Suicide Email Blaming China for Drone Spy ProgramMatthew Livelsberger, the man who died in the Tesla Cybertruck explosion outside a Donald Trump hotel in Nevada, left a 'suicide email' claiming China is using drones to spy on the US. He also wrote notes stating the bombing was 'not a terrorist attack, but a wake-up call'. Livelsberger, a former US Army Special Forces member, alleged China was launching drones from submarines to spy on the US and poised to attack. He also claimed to be followed by FBI agents and part of a cover-up of US war crimes.
Read more »
Global green subsidy race draws investor attentionEurope, the US and China are vying to be the most attractive destination for investment in sustainability
Read more »
EU’s new agriculture chief seeks more funds for small farmersChristophe Hansen seeks changes to bloc’s multibillion-euro farm subsidy scheme
Read more »
UK ministers consider biggest ever renewable subsidy auctionDiscussions come as government seeks to meet 2030 clean power target
Read more »
Heat Pump Sales Surge in Germany Amid Fears of Subsidy CutsA potential shift in German government policy towards renewable energy heating is sparking a rush to purchase heat pumps. Conservative parties threaten to scrap subsidies for heat pump installations, leading to a surge in demand and concerns from supporters of the current green energy policies.
Read more »