China Holiday Trade-In Programs Generate $4.7 Billion in Sales
Vehicle purchases, home appliances and digital products accounted for most sales as Beijing used subsidies to boost domestic consumption.
BEIJING — China's consumer trade-in programs generated 33.5 billion yuan ($4.7 billion) in sales during the week-long National Day holiday, as Beijing continued using subsidies to encourage household spending and support domestic demand.
The programs covered vehicle purchases, home appliances, digital products and other eligible consumer goods, according to City News Service, which cited figures from China's Ministry of Commerce.
Vehicle purchases accounted for 10.9 billion yuan in sales during the holiday period, while home appliances generated 12.3 billion yuan. Digital and smart products contributed another 8.7 billion yuan, the report said.
The trade-in initiative allows consumers to receive subsidies when replacing eligible older products with new ones. The policy is designed to lower purchase costs, encourage upgrades and stimulate spending across several consumer industries.
The latest figures highlight the government's continued reliance on targeted fiscal incentives as China seeks to strengthen domestic consumption and reduce its dependence on export-driven growth.
The program also provides support for manufacturers and retailers, particularly those selling automobiles, refrigerators, washing machines, smartphones and other consumer electronics.
However, sales generated under the subsidy scheme do not necessarily represent additional spending that would otherwise not have occurred. Some purchases may have been brought forward or shifted from future months, making the longer-term impact on consumption an important measure of the policy's effectiveness.
China's policymakers have repeatedly identified domestic demand as a priority for economic development. Encouraging households to replace older vehicles and appliances is one approach to supporting consumption while accelerating the adoption of newer, more efficient products.
The holiday sales figures provide an early indication of activity under the trade-in program, although broader retail data will be needed to assess whether the increase translates into sustained consumer spending beyond the holiday period.