China’s consumer trade-in stimulus scheme, targeting cars, home appliances, and other goods, boosted consumption growth by over 1 percentage point in 2024, according to Vice Commerce Minister Sheng Qiuping. The program generated 1.3 trillion yuan ($179.45 billion) in sales, helping retail sales grow by 3.5% year-on-year.
In 2025, China plans to expand the scheme, adding more home appliances and digital goods to the subsidy list while integrating domestic and foreign trade initiatives.
However, analysts caution the impact may fade in the second half of 2025, as durable goods sales are not sustainable long-term. Subsidies might also shift household spending away from other product categories.
Last year, China allocated 150 billion yuan from its special treasury bonds to subsidise replacements of old appliances, cars, bicycles and other goods, and officials have pledged to expand the funding this year.