The data platform for the appliance trade-in program, managed by the Ministry of Commerce, indicates that as of October 15, over 20.67 million consumers applied for the program, with 10.13 million purchasing 14.62 million appliances across eight major categories. This led to a central subsidy of 13.17 billion yuan, driving sales up to 69.09 billion yuan. This data reflects the ongoing effectiveness of the trade-in policy for consumer goods as it continues to evolve.

Since the implementation of the “Action Plan for Large-Scale Equipment Renewal and the Trade-In of Consumer Goods” and several supporting measures, consumer potential has been effectively stimulated. This has resulted in a rapid increase in sales of key consumer goods including automobiles, home appliances, and home furnishings, thereby boosting related industry investments and overall benefits, and reinforcing economic growth.

Market impact has been quite significant. In early August, the allocation of 150 billion yuan in long-term bonds to support consumer trade-ins was completed at the local level. Additionally, subsidies in key areas were notably increased, allowing more financial support to reach consumers directly. This, combined with several policy initiatives, has led to substantial sales growth in automobiles, appliances, and home décor sectors.

Optimizing local implementation of the trade-in policy has transformed online platforms into crucial channels for consumers. A highlight of this year’s “Double 11” shopping festival is that the appliance trade-in subsidies can be stacked with the festival discounts for the first time. Several platforms have noted that this year’s appliance purchase incentives are among the most substantial in recent years. During the “Double 11” event, products within the appliance categories not only featured competitive pricing but also a wide range of options.

As of now, over 20 provinces, including Beijing, Shanghai, Guangdong, Zhejiang, and Hubei, have rolled out appliance replacement initiatives via platforms like JD.com. On JD’s platform, more than 8,500 appliance models from eight categories are participating in the program. Tmall, in collaboration with over a thousand brands, has invested 6 billion yuan in incentives, leveraging various methods such as category vouchers and brand discounts to actively support the trade-in policy and invigorate consumption. A representative from Douyin’s e-commerce appliance sector stated they would enhance customer access to subsidies and product purchases through live streams and short videos.

The government’s push to strengthen the automobile trade-in policy has noticeably uplifted the market. There has been a swift increase in applications for car scrappage subsidies, effectively boosting vehicle sales. According to data released by the China Association of Automobile Manufacturers (CAAM), nearly 1.31 million new energy vehicles were produced and sold in September, reflecting year-on-year increases of 48.8% and 42.3%, respectively, marking record highs for monthly production and sales.

Chen Shihua, Deputy Secretary-General of CAAM, noted that with enhanced national-level scrappage incentives and the gradual rollout of local replacement programs, along with car manufacturers launching new models for the fall, the passenger vehicle market is showing signs of recovery, especially in retail.

As of midnight October 16, applications for the national automobile scrappage subsidy had surpassed 1.42 million since the policy’s launch, with new applications exceeding 20,000 for the first time in one day.

The trade-in policy has not only provided tangible benefits to consumers but has also helped businesses widen their sales channels. Song Jianwen, General Manager of Hisense’s online development division in China, reported a more than 100% year-on-year increase in sales for Hisense products on JD.com since the implementation of the trade-in policy. During the recent National Day holiday, foot traffic at Suning stores across the country surged by over 200%, while trade-in orders increased by 132% year-on-year.

Wen Hua, Deputy Director of the Resource Conservation and Environmental Protection Division of the National Development and Reform Commission, highlighted that the trade-in policy has also indirectly stimulated investments and growth in related industries. From January to August, investments in the consumer goods manufacturing sector increased by 14.9% year-on-year. Furthermore, the value added by consumer goods manufacturing grew by 4.2% in August compared to the previous year, with growth rates accelerating. In sectors benefiting from the trade-in policy, production figures for household washing machines, smart televisions, and refrigerators saw month-on-month gains of 7%, 6.7%, and 4.7%, respectively.

Local governments are actively refining supportive measures. At a recent national video conference on the trade-in program, Deputy Minister of Commerce Sheng Qiuping emphasized the need for localities to enhance organizational support, adopt problem and goal-oriented approaches, and ensure that trade-in initiatives are effectively advanced. Local governments are urged to expedite subsidy disbursements, allowing consumers to access financial benefits quickly, and to fully leverage the busy “Golden September and Silver October” season through various matchmaking activities.

Beijing, for instance, has implemented a price fluctuation cap to prevent pre-subsidy price hikes, while also enhancing accessibility through platform channels. The city’s development reform committee reported that retail sales for household appliances and audiovisual equipment grew from 1.4% year-on-year in the first half of the year to 8.9% by August.

In Chongqing, a key automotive manufacturing hub, efforts to develop a trillion-yuan smart connected vehicle industry cluster have shown promising results, with strong consumer demand boosting market activity. By September 22, Chongqing had received over 64,000 applications for automotive scrappage and replacement subsidies, amounting to over 900 million yuan in financial support. The impact of these policies has been substantial, achieving a leverage ratio of 1:6 for scrappage subsidies and 1:21 for replacement subsidies.

In Guangdong, to align with the national trade-in policy, the “Yue Renew” public service platform has been launched, allowing consumers to participate via WeChat mini-programs. Promotional entries for the initiative are prominently featured on the homepages of major e-commerce sites.

Following the introduction of enhanced policies in August, Guangdong reported over 9.3 million applicants for appliance trade-in subsidies and more than 145,000 appliances exchanged, along with nearly 30,000 automobile scrappage and replacement applications.

Facilitating the execution of these policies is critical. According to the National Taxation Administration, retail sales for household audiovisual devices such as televisions and appliances like refrigerators grew by 10.2% and 6.5%, respectively, in the first three quarters of this year under the trade-in policy.

With comprehensive implementation details for the trade-in program now established and funds allocated, the retail volume of passenger cars has significantly rebounded, and appliance sales have reversed direction from a decline to growth. Zheng Zhanjie, Director of the National Development and Reform Commission, stated that there is a need to increase the drive behind these policies to consistently boost consumer spending.

Since the introduction of the policies to support the new sectors in July, various departments have subsequently issued detailed guidelines in the areas of automobiles, appliances, electric bicycles, and home renovation. Moreover, all 115 revised national standards related to supporting trade-in initiatives have been fully established, with 30 already published. Wang Shengli, Deputy Director of the Quality Supervision Department of the State Administration for Market Regulation, remarked that the release and implementation of these national standards will solidify safety parameters, elevate quality benchmarks, and hasten the upgrading of traditional consumption, thereby driving new consumption patterns and unlocking domestic demand potential.

When discussing future efforts to maximize the use of trade-in funds and further stimulate consumption, Wen emphasized the importance of effectively implementing policies, refining supportive measures, and optimizing operational processes to ensure the comprehensive rollout of renewal policies. There is a need for expedited approvals, improved service quality, and streaming of subsidy payments, while also enhancing fund oversight and impact assessment.