On Friday, the Chinese government announced a plan to considerably increase the amount of the ultra-long special treasury bond issuance in 2025 to support large-scale equipment upgrades and consumer goods trade-in programs.
Yuan Da, deputy secretary-general of the National Development and Reform Commission (NDRC), said that the government would expand the list of eligible areas for receiving funding support, this includes electronic information, production safety, and agriculture facilities.
Chinese consumers would also receive subsidies when purchasing digital products in the following categories: mobile phones, tablets, and smartwatches/wristbands.
Furthermore, the government would also increase subsidies for upgrading new energy city buses, batteries, and agricultural machinery and bolstering support for home decoration-related products, said the official.
The Chinese government has launched a series of measures in March 2024 to promote equipment renewal and consumer goods trade-in, in an effort to strengthen demands and reinforce economic growth.
Yuan remarked that works related to the funding programs have boosted investment, and household consumption, and expedited green transition amid the booming in sales of environment-conscious products.
During the press conference on Friday, the government officials also plan to shore up support in major national strategic projects and create security capacity in key areas utilizing the ultra-long special bond in 2025.
The government will continue to support the ecological and environmental protection and green development in the Yangtze River Economic Belt, the development of the New International Land-Sea Trade Corridor, and improving urban services to support further urbanization and improvement in higher education.
The funding support would also include large and medium-sized irrigation zones, water diversion projects, constructions of intercity railways among key urban clusters, and reduction of logistics costs throughout the nation.
According to Zhao Chenxin, deputy head of the NDRC, in 2024, China has allocated CNY 300 billion (around $42 billion) for the ultra-long special treasury bond in a bid to boost equipment renewal and consumer goods trade-in programs.
The share price of Xiaomi, Chinese designer and manufacturer of consumer electronics and home appliances, rose 6.62% at the closing on Friday.
