The Chinese government is launching a subsidy program for personal devices such as smartphones, smartwatches, and tablets as part of its efforts to boost domestic consumption. Previously limited to automobiles and home appliances, the $41.1 billion consumer spending plan has now been expanded to include personal electronics.
On Friday, officials from China’s economic planning agency announced changes to the national trade-in program, confirming that devices like smartphones, tablets, and smartwatches will be included in the scheme this year.
In response to consumers’ tendency to cut back on spending in the post-pandemic period, China has introduced various subsidies to stimulate domestic demand. This initiative aims to encourage spending while ensuring the sustainability of the country’s long-term growth strategy.
Yuan Da, Deputy Secretary-General of the National Development and Reform Commission, stated that the government will significantly increase the sale of special treasury bonds to fund the consumer spending plan. He also noted that the program would enable companies to upgrade their equipment.
In July, China allocated $41.1 billion in funds from special state bonds to support subsidies, resulting in a significant surge in automobile and home appliance sales by September. Details of an expanded plan are expected to be released soon.
This is not China’s first attempt to boost consumption through subsidies. In late 2007, as part of its efforts to counter the effects of the global financial crisis, the government subsidized cellphone purchases, specifically targeting residents in rural areas.
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