China makes notable progress via equipment, consumer goods renewal program: official

BEIJING -- China has made noteworthy progress in promoting large-scale equipment upgrades and consumer goods trade-ins this year, an official said on Monday.

China unveiled an action plan to implement the renewal program in March 2024 in an effort to expand domestic demand and shore up the economy, and stepped up policy support in July with an extra funds injection of 300 billion yuan (about 42.53 billion U.S. dollars) via ultra-long special treasury bonds.

Zhao Chenxin, deputy head of the National Development and Reform Commission, cited a string of positive results achieved by the program, highlighting increased equipment manufacturing investment and robust sales of automobiles and home appliances, when addressing a press conference on Monday.

In the first eight months of 2024, China's investment in equipment and tool purchases had increased by 16.8 percent year on year -- well above the 3.4 percent increase in total fixed-asset investment.

Retail sales of passenger vehicles in August rose by 10.8 percent compared with the previous month, while new energy vehicle (NEVs) sales increased by 17 percent month on month in August. The market share of NEVs remained above 50 percent for a second consecutive month. Sales of home appliances and audio and video products returned to growth last month, up 3.4 percent year on year.

Thanks to the renewal program, many enterprises are optimistic about the prospects of sectors related to equipment and consumer goods, leading to brisk investment, Zhao said.

The program, riding on the great potential of green and digital transition, will provide more impetus to economic sustainability and transformation efforts, Zhao added.

China's drive to promote equipment upgrades covers a wide range of areas including industrial equipment, environmental infrastructure, operating vessels, new energy buses and agricultural machinery, while consumer goods trade-ins involve products ranging from automobiles to home appliances and electric bicycles.