New National Policies Boost Consumption with Subsidies! Up to 500 for Phones, 2000 for Computers, and More!

New National Policies Boost Consumption with Subsidies! Up to 500 for Phones, 2000 for Computers, and More!In 2025, the Chinese government will further stimulate consumption by expanding its trade-in and purchase subsidy programs. On January 8th, the State Council Information Office held a press conference where officials from the National Development and Reform Commission, Ministry of Finance, Ministry of Commerce, People's Bank of China, and State Administration for Market Regulation detailed these beneficial policies

New National Policies Boost Consumption with Subsidies! Up to 500 for Phones, 2000 for Computers, and More!

In 2025, the Chinese government will further stimulate consumption by expanding its trade-in and purchase subsidy programs. On January 8th, the State Council Information Office held a press conference where officials from the National Development and Reform Commission, Ministry of Finance, Ministry of Commerce, People's Bank of China, and State Administration for Market Regulation detailed these beneficial policies.

The core objective of this policy expansion is to enhance consumer confidence, stimulate domestic demand, and promote high-quality economic development. The key aspects of the policy are:

I. Subsidies for New Digital Products: Up to 500 for Phones and Tablets

To meet the growing demand for electronic products, a new subsidy program for digital products like smartphones is in effect. Individual consumers purchasing smartphones, tablets, and smartwatches/fitness trackers (with a single-item sales price not exceeding 6000) will receive a 15% subsidy, capped at 500 per item and one item per consumer per product category. This significantly lowers the barrier to entry for high-end devices, stimulating the digital products market.

This policy is expected to significantly boost consumer purchasing power, driving the rapid development of related industries, creating jobs, and promoting economic growth. It also provides consumers with more choices.

II. Expanded and Increased Subsidies for Appliance Trade-ins

The existing appliance trade-in program has been expanded and upgraded in 2025. The scope has increased from 8 to 12 categories, adding microwaves, water purifiers, dishwashers, and rice cookers.

Subsidies have also increased. Purchases of appliances meeting Tier 2 energy efficiency or water efficiency standards receive a 15% subsidy, while Tier 1 appliances receive a 20% subsidy. The subsidy is capped at one item per consumer per category, with a maximum of three air conditioners per consumer. The maximum subsidy per item is 2000. Consumers who received subsidies in 2024 can still receive subsidies for the same appliance category in 2025.

III. Subsidies for National IV Standard Fuel Vehicle Scrapping and Renewal

To promote the healthy development of the automotive industry, gasoline vehicles registered before June 30, 2012, and diesel and other fuel vehicles registered before June 30, 2014 (meeting National IV emission standards) are now eligible for scrappage and renewal subsidies. This will help eliminate older vehicles, reduce emissions, improve air quality, and create a greener environment.

Importantly, the national maximum subsidy amount has been standardized, ensuring consistent policy implementation across regions and enhancing fairness and transparency. This will accelerate the replacement of older vehicles, promote consumption upgrades in the automotive market, and drive the transformation and upgrading of the automotive industry.

IV. Significant Investment Growth Driven by "Two New" Policies

Officials from the National Development and Reform Commission reported that the "Two New" policies (equipment upgrades and trade-ins) have significantly boosted investment growth. In 2024, over 2 million units of equipment were upgraded in industrial, energy consumption, energy power, and transportation sectors, just from the 4600+ projects supported by ultra-long-term special government bonds. It's estimated that the total equipment upgrades across key sectors nationwide could reach over 20 million units, significantly driving investment in related equipment and tools.

This data clearly demonstrates the positive role of the "Two New" policies in promoting economic development. Supporting equipment upgrades and consumer goods trade-ins effectively drives investment and consumption, creating strong economic momentum and supporting the goal of high-quality development.

Summary:

These new national policies covering smartphones, computers, home appliances, and National IV fuel vehicles offer significant subsidies, stimulating consumption and promoting economic growth. These measures will directly benefit consumers, improve living standards, boost domestic demand, and drive industrial upgrades, contributing to a more comprehensive consumer market system and a greener society. With these policies in place, China's consumer market is expected to experience robust growth in 2025. Please refer to official announcements for detailed implementation rules.