In an effort to stimulate its slowing economy, China has expanded its trade-in program, now including kitchen appliances like microwave ovens, dishwashers, rice cookers, and water purifiers. The initiative, designed to encourage consumer spending, offers discounts of up to 20% on new goods in exchange for old products.
Previously, the program covered electronics such as televisions, phones, tablets, smartwatches, and electric and hybrid vehicles. The Chinese government has allocated 81 billion yuan ($11 billion) this year for the trade-in scheme, which was launched in March 2024.
China's economy has faced multiple challenges, including weak consumer demand and a struggling property market. Despite these difficulties, officials claim the scheme has had "visible effects" in boosting sales of major consumer goods, particularly home appliances and cars.
However, some economists question whether the trade-in programs will be sufficient to drive substantial growth in overall consumer spending. Experts like Dan Wang, an economist in China, and Harry Murphy Cruise from Moody's Analytics, believe the measures alone may not be enough to significantly increase consumption across the country.
In response to economic struggles, Chinese leaders have stressed the importance of boosting domestic consumption, as exports face increasing challenges. The country also anticipates a 5% growth rate for 2024, and China's leadership continues to explore further economic support measures.
With President-elect Donald Trump threatening to impose tariffs on Chinese imports, China is keen to safeguard its economy with these domestic initiatives ahead of the upcoming economic growth figures for 2024.