China bets on kitchen appliances to help boost economy
The Chinese government has broadened the range of products eligible for trade-ins, offering discounts of up to 20% on new items, as part of efforts to revive the country’s struggling economy.
The updated list now includes products like microwave ovens, dishwashers, rice cookers, and water purifiers.
Previously, the trade-in program covered items such as televisions, phones, tablets, smartwatches, and electric and hybrid vehicles.
China, the world’s second-largest economy, has been grappling with several issues, including sluggish consumer demand and an escalating property crisis.
On Wednesday, officials revealed that 81 billion yuan (£8.9bn; $11bn) has been allocated for the consumer goods trade-in initiative this year.
China’s top economic planning authority stated that the schemes, which began in March, have already shown “visible effects.”
According to the country’s Ministry of Commerce, the policies have boosted sales of big items items such as home appliances and cars.
However some economists have questioned whether the schemes will be enough to significantly increase consumer consumption.
“The approach has had mixed success so far,” said Harry Murphy Cruise, head of China economics at Moody’s Analytics.
“While it has supported sales of some listed goods, such as cars and appliances, it hasn’t driven an overall uptick in spending.”
In recent months, China has been pushing ahead with more measures to support its domestic economy as the country’s exporters face growing challenges.
In December, a key meeting of China’s leaders stressed the need for “vigorous” efforts to boost consumer spending.
That came as President-elect Donald Trump, who is due to return to the White House this month, threatened to impose a 60% tariff on Chinese-made products.
China is due to announce its 2024 economic growth figures next week, which Beijing has said it expects will be around 5%.
