(MENAFN) On Sunday, the Beijing municipal government unveiled an ambitious action plan aimed at facilitating equipment renewals and incentivizing trade-ins of consumer goods. Comprising 23 specific measures, the plan encompasses various sectors, including upgrades to rail transit, heating, and natural gas systems, as well as advancements in educational and medical equipment. Additionally, initiatives for green transformations and intelligent computing in data centers, along with support for replacing old vehicles, are integral components of the plan.
Government officials have praised the initiative for its potential to unlock significant market opportunities. According to Lai Xianyu, deputy director of the Beijing Municipal Commission of Development and Reform, Beijing has reached a critical juncture in renewing and replacing existing assets, positioning it ahead of the rest of the nation in this regard. With over 40 years of reform and opening-up, the city has accumulated a considerable inventory of machinery, equipment, and durable consumer goods, indicating substantial demand for renewal and replacement.
By 2023, Beijing residents possessed over 50 million household appliances and approximately 7.6 million motor vehicles, underscoring the scale of demand for renewal and replacement. To bolster the action plan, Beijing authorities will introduce a range of incentives. Zhao Weidong, deputy director of the Beijing Municipal Commerce Bureau, outlined plans to promote smart household appliances and modernized home furnishings, focusing on 26 types of eco-friendly and innovative products.
Consumers purchasing new items stand to benefit from subsidies equivalent to 10 percent of the product prices, with subsidies capped at 1,000 yuan (about 138 U.S. dollars) per item, according to Zhao. These measures are designed to stimulate consumer spending, drive technological innovation, and promote sustainable development in Beijing's consumer goods market.
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