Beijing, March 25, 2024, The Europe Today: China has unveiled a comprehensive strategy aimed at revitalizing its economy through a new wave of large-scale equipment upgrades and the facilitation of consumer goods trade-ins, in a bid to bolster domestic demand and sustain economic momentum throughout the year.
Outlined in an action plan released by the State Council, China has set ambitious targets to significantly enhance investment in various sectors including industry, agriculture, construction, transportation, education, culture, tourism, and medical care. The plan aims to achieve a minimum 25 percent increase in equipment investment by 2027, compared to 2023 levels.
Key provisions of the plan include doubling the volume of scrapped vehicles by 2027, alongside a 45 percent increase in used car transactions. Moreover, recycling of used household appliances is slated to rise by 30 percent over the same period.
The plan delineates 20 pivotal tasks spanning equipment renewal, consumer goods trade-in, used goods recycling, standard enhancement, and policy reinforcement, underpinned by fiscal and financial support measures.
China, as a leading manufacturing hub propelling new industrialization, continues to exhibit robust demand for advanced equipment and technological upgrades, as noted by the National Development and Reform Commission (NDRC), the nation’s premier economic planner.
Initial projections suggest that equipment upgrades could foster an expansive market exceeding 5 trillion yuan annually, according to the NDRC. The plan prioritizes advancements in energy efficiency, emission reduction, safe production, digital transformation, and intelligent upgrading, aligning with China’s vision for high-end, green, and smart industries.
The country’s sizable consumer base, particularly in the automobile and home appliance sectors, presents lucrative opportunities for consumer goods trade-ins. This strategic initiative aims to enhance market accessibility for high-quality durable goods, meeting the evolving needs of consumers while driving industry growth.
Official data underscores the scale of China’s consumer goods landscape, with over 3 billion home appliances currently in circulation and more than 200 million units scrapped in 2023 alone. Anticipated automobile sales exceeding 31 million units in 2024 further underscore the substantial market potential for trade-ins, accounting for approximately 44 percent of total sales.
The envisioned upgrade of automobiles and home appliances alone is poised to ignite a trillion-yuan market, heralding a new chapter of economic dynamism and innovation-driven growth in China.
