New innovation drive: China's trade-in policy sparks green consumption

China, a nation renowned for its rapid economic growth, is now making significant strides towards sustainable development. A recent trend in this green transition is a government-led trade-in program, which is encouraging consumers to swap out older, less efficient products for greener alternatives.

Government initiatives have played a pivotal role in fueling this green consumer trend. In July, the State Council earmarked 300 billion yuan ($41.3 billion) in ultra-long-term special government bonds to support the trade-in programs for consumer goods such as home appliances and automobiles.

As a result of this effort, Chinese consumers have embraced trade-ins with enthusiasm. From electronics and appliances to vehicles, people are increasingly opting for products that are more energy-efficient and environmentally friendly. This shift in consumer behavior has not only reduced the nation's carbon footprint but has also created new markets for green technologies.

"We have partnered with factories and banks to provide subsidies to customers, with discounts of up to 50 percent or more," Wang Zhaotong, director of consumer electronics sales at Suning Beijing, told CGTN. "In Beijing, more than 200,000 consumers have received government subsidies, accounting for 90 percent of total orders."

"Since October this year, Suning in Beijing has seen an overall sales increase of 95 percent year-on-year."

A consumer surnamed Chen, who replaced his 6-year-old car with a new energy vehicle (NEV), told a local newspaper in Guangzhou that he "no longer needs to worry about fuel consumption" while enjoying a subsidized price.

Government data shows that over 62 percent of cars sold in the trade-in program are NEVs, while over 90 percent of electric home appliances sold belong to the "Grade 1" energy efficiency, the most efficient in the five-grade rating system.

Innovative companies are capitalizing on this growing demand for sustainable products. For instance, a leading battery maker, Contemporary Amperex Technology Co., Limited (CATL), has developed a fast-charging battery technology that significantly reduces charging time for electric vehicles. Meanwhile, Gree, a major home appliance manufacturer, has introduced a new direct current air conditioner that offers improved energy efficiency and indoor air quality. These technologies have been listed as pivotal green-tech innovations by the Patent Protection Association of China in 2024.

By promoting trade-in programs and supporting green innovation, China is setting a global example for sustainable consumption. With the annual Central Economic Work Conference approaching, the country is expected to further invest in green technologies and infrastructure, positioning itself to become a global leader in sustainable development.