China expands trade-in and equipment renewal policies to drive consumption

China has unveiled new measures to expand the country's old-for-new exchange program and equipment renewal policies for 2025, aiming to further stimulate consumer spending and industrial upgrades.

The number of household appliance categories eligible for the trade-in subsidy program will be broadened from eight last year to 12 for 2025, with a maximum subsidy of 20 percent of the sales price per item, according to officials at a media conference held by the National Development and Reform Commission and Finance Ministry on Wednesday.

Meanwhile, updated policies broaden the scope of funding support for equipment replacement to include the digital, industrial safety and agricultural facilities sectors.

According to an equity market overview on Baidu, stocks of large household appliance manufacturers, e-commerce companies and general retailers rose following the announcement on Wednesday.

According to a China Central Television (CCTV) report, by mid-December, the country's trade-in policies had already spurred the replacement of 5.8 million vehicles, with several automakers reporting record sales. Over 33 million consumers had purchased over 52 million items through the "old-for-new" trade-in program, while more than two million sets of outdated equipment were updated, official data showed.

The old-for-new exchanges program alone had driven over one trillion yuan ($144 billion) in sales, fueling both consumption and investment, while supporting industrial growth and the country's green transition, reported CCTV.