China Equipment Renewal: China Announces 300 Billion Yuan Plan for Equipment Renewal & Trade-ins
Major Initiative Aims to Enhance Living Standards and Stimulate Economic Growth

- Li Monan
- August 10, 2024
- 4:01 am
- No Comments
China Equipment Renewal is at the forefront of a major economic initiative unveiled on July 25. This groundbreaking plan allocates 300 billion yuan through ultra-long-term special treasury bonds to support large-scale equipment updates and the trade-in of consumer goods.
The strategy focuses on modernizing outdated equipment and facilitating the exchange of old consumer products, aiming to boost living standards and economic growth. By channeling these substantial funds into equipment renewal, China aims to stimulate industry advancement and consumer spending, driving significant economic and sustainability benefits.
The initiative allocates approximately 150 billion yuan to support updates in fields such as energy and electricity, as well as safety and energy efficiency transformations. Another 150 billion yuan will be directed to local governments to facilitate the trade-in of old consumer goods for new ones. This plan aims to replace outdated equipment and improve living conditions, while also boosting related industries.
Notably, subsidies for car scrapping and renewal have increased substantially. New energy vehicles now receive a subsidy of 20,000 yuan, while fuel vehicles are supported with 15,000 yuan. Additionally, consumers purchasing energy-efficient household appliances will benefit from a 15% subsidy, with extra incentives for top-tier energy efficiency products.
The plan also includes increased support for equipment renewal loans, with the central government raising the discount ratio from 1% to 1.5%. Furthermore, 7.5 billion yuan has been allocated for recycling waste electrical and electronic products, with a goal to guide the environmentally-friendly dismantling of over 80 million units annually.
To ensure effective implementation, initial funds of around 50 billion yuan for approved projects and 150 billion yuan for local trade-ins will be distributed soon, with the full 300 billion yuan expected to be allocated by the end of August. Quality control measures will be enhanced to ensure the safety and reliability of consumer goods.
This initiative is expected to foster economic growth, improve quality of life, and support sustainable practices through enhanced recycling and updated equipment.