Capacity revealed: How foreign brands benefit from China's consumer trade-in program

China's consumer trade-in program has expanded since 2025 to cover vehicles, home appliances, mobile phones, tablets and other digital products. Foreign brands have been able to participate alongside domestic brands.

Apple provides a clear example. When subsidies for mobile phones took effect in January 2025, eligible iPhone models were included in the program. A 128GB iPhone 16 was available for 4,699 yuan (about $700) after a 500-yuan subsidy at Apple's official store on JD.com, according to China Media Group. The subsidy applied to eligible products priced at no more than 6,000 yuan, at 15% of the final selling price, capped at 500 yuan.

Foreign automakers have also participated. In January 2026, consumers were seen visiting a Tesla store in Wuhan after the new round of vehicle trade-in subsidies took effect. The program offered subsidies of up to 20,000 yuan for scrappage replacement and 15,000 yuan for trade-in replacement, subject to eligibility requirements.

Official figures show the scale of foreign-brand participation. On June 22, Ling Ji, vice minister of Commerce and Deputy China International Trade Representative, said foreign auto brands accounted for more than 35% of new vehicle sales under the trade-in program. Foreign brands accounted for more than 13% of new purchases of home appliances, digital products and smart products. He also said China supports foreign-invested companies in participating in consumer trade-in policies on an equal basis.

The equal-treatment principle is also reflected in the policy rules. The 2025 implementation plan for subsidies on new mobile phones, tablets and smartwatches explicitly called for equal and fair participation by domestic and foreign brands and different types of businesses.

The Commerce Ministry reiterated the principle in its July 28 position paper on the so-called "overcapacity" issue, saying China's consumer trade-in policies treat domestic and foreign-funded businesses equally. It also noted that some subsidy programs in the United States and European Union link support to domestic production or local content, creating barriers for companies from other economies.

China's stated approach is to use consumer subsidies to improve people's access to upgraded products and boost consumption, rather than to favor companies based on ownership. Foreign brands can participate under the same policy framework.