China's consumer goods substitution program spurs economic growth
Date
6/26/2024 8:21:03 AM
(MENAFN) China's initiative to replace consumer goods, launched in March, has yielded impressive results in stimulating domestic demand, particularly evident in increased sales across the automotive, home appliances, and furniture sectors. According to reports from the China Media Group, the Ministry of Commerce has received a total of 113,000 applications for vehicle replacement subsidies as of June 25, with a notable surge of 36,000 new applications in the past week alone.
The automotive industry has experienced robust growth under this program, with 2.2 million older vehicles being phased out between January and May, marking a 19.4 percent annual increase. Sales of new energy vehicles surged by 32.5 percent, reaching 3.895 million units, reflecting a strong shift towards environmentally friendly transportation options. In May alone, car sales exceeded 2.27 million units, up 8.7 percent from the previous year, with new energy passenger cars showing an even sharper increase of 38.5 percent.
Meanwhile, the home appliances and furniture sectors also reported positive performance indicators. Retail sales of home appliances reached 74.3 billion yuan in May, registering a 12.9 percent increase, while furniture sales rose by 4.8 percent during the same period. These figures underscore the program's effectiveness in boosting consumer spending and supporting market growth across various consumer goods sectors.
The consumer goods replacement program is part of China's broader economic strategy to stimulate domestic consumption as a key driver of economic expansion. By encouraging consumers to upgrade to newer and more efficient products, the initiative not only supports industry growth but also aligns with national goals of promoting sustainability and technological advancement in consumer markets. As the program continues to unfold, its impact on economic resilience and sectoral development remains pivotal in shaping China's economic landscape.
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