China’s consumer trade-in initiative has generated 1.1 trillion yuan in sales across five major categories as of May 31, with approximately 175 million subsidies distributed directly to consumers. The policy has emerged as a significant driver of domestic consumption recovery, contributing to a 4.7% year-on-year increase in national retail sales during the first four months of 2025.
Category Breakdown Shows Broad Participation
The program has seen particularly strong uptake in automotive trade-ins, with 4.12 million subsidy applications processed. Nearly 50 million consumers purchased 77.6 million home appliances across 12 categories, while over 53 million consumers acquired 56.6 million digital products including smartphones. The initiative also facilitated 6.5 million electric bicycle replacements and 57.6 million home renovation and kitchen/bathroom upgrades.
Policy Effectiveness in Stimulating Demand
Commerce authorities highlight the program’s success in activating latent consumer demand, particularly for durable goods. The substantial subsidy allocation and resulting sales growth demonstrate the policy’s effectiveness in boosting consumption while promoting product upgrades and energy efficiency improvements across multiple sectors.
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