Chinese authorities implement program to incentivize consumers to upgrade old home appliances
Date
8/26/2024 10:00:43 AM
(MENAFN) Chinese authorities are implementing a new program to incentivize consumers to upgrade their old home appliances by offering financial subsidies. A recent circular from the Ministry of Commerce, along with three other government departments, outlines this initiative. The program targets eight categories of high-energy-efficiency appliances, including refrigerators, washing machines, televisions, air conditioners, and computers. Consumers who trade in their old appliances for new, energy-efficient models can receive subsidies amounting to 15 percent of the final sale price of the new product.
Under the new scheme, each consumer is eligible for subsidies on one item per category, with the maximum subsidy per item capped at 2,000 yuan (approximately 280.28 U.S. dollars). This policy aims to encourage widespread adoption of energy-efficient appliances, thus contributing to environmental sustainability and reducing energy consumption.
Local governments are tasked with coordinating the allocation of both central and local funds to support this initiative. This collaborative effort is intended to maximize the reach and effectiveness of the program, ensuring that consumers across different regions can benefit from the subsidies. The program is part of China's broader strategy to stimulate domestic demand and bolster economic growth by encouraging the replacement of old appliances with newer, more efficient models.
The trade-in program is a component of a larger action plan released by China's State Council in March. This plan seeks to initiate a significant upgrade of consumer goods, marking a major renewal effort nearly 15 years after the previous round of equipment upgrades. By the end of 2023, there were approximately 336 million civilian automobiles and over three billion major household appliances in China. The upgrading drive is expected to generate substantial market demand, estimated to exceed one trillion yuan, thereby contributing to economic expansion and technological advancement.
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