Over 20 million consumers in China have eagerly embraced a government initiative to upgrade their electronic devices, applying for trade-in subsidies within just three weeks of the program’s launch. Data released by the Ministry of Commerce on Sunday indicated that as of Saturday, 20.09 million consumers had applied for subsidies to purchase 25.41 million units of electronic products, including mobile phones.
The pro-consumption program, which began on January 20, offers consumers up to 500 yuan (approximately $69.70) per device when they trade in their old electronics for new ones. The initiative aims to stimulate domestic consumption and accelerate the adoption of the latest digital technologies across the country.
China UnionPay, the nation’s leading card payment processor, reported 6.27 million subsidized transactions amounting to a total sales value of 20.58 billion yuan during the reporting period. The significant uptick in transactions highlights the program’s success in boosting consumer spending.
Market data revealed that, spurred by the government incentives, mobile phone sales in China surged by 74 percent in volume and 65 percent in value on a weekly basis during the week leading up to the Spring Festival, which fell on January 22 this year. The holiday season typically sees elevated consumer activity, and the subsidy program amplified this effect as residents seized the opportunity to upgrade their devices.
This latest trade-in program is part of China’s broader efforts to promote large-scale equipment renewal and the exchange of consumer goods. Earlier action plans have included measures to encourage the upgrade of items such as automobiles and home appliances, aiming to invigorate domestic consumption and support economic growth.
Official data from the previous year showed that these trade-in schemes bolstered automobile sales by 920 billion yuan and home appliance sales by 240 billion yuan. The government’s continued focus on stimulating consumption through such incentives reflects a strategic approach to fostering economic vitality and meeting the evolving demands of consumers.
