China: China has expanded its consumer trade-in discounts to revive its slowing economy. The initiative now includes products such as microwave ovens, dishwashers, rice cookers, and water purifiers, with discounts of up to 20 percent available for new purchases.
Previously, the state-backed program covered items like televisions, smartphones, tablets, smartwatches, and electric and hybrid vehicles. Officials say the schemes, which began in March, have already shown “visible effects,” with sales of major appliances and cars on the rise.
To further bolster consumer spending, $11 billion (81 billion yuan) has been allotted to the trade-in schemes this year. However, some economists remain sceptical about their overall impact. Dan Wang, a China-based economist, said the measures “are far from being enough to boost consumption.”
Similarly, Harry Murphy Cruise, head of China economics at Moody’s Analytics, noted that while certain product varieties have seen sales growth, the programmes have yet to produce a broad increase in spending.
The trade-in initiatives are part of a broader strategy by China to stimulate its domestic economy, as weak consumer demand and a property crisis weigh on growth. External pressures, such as declining exports and the threat of U.S. tariffs under incoming President Donald Trump, further complicate the outlook.
China’s leaders emphasised the need for “vigorous” efforts to improve consumer spending during a key meeting in December. The government is set to announce its 2024 economic growth figures next week, with projections close to 5 percent.
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