Recently, China has launched an extensive initiative aimed at upgrading devices and promoting the replacement of old consumer goods, commonly known as the “Two New” policy. Backed by substantial government subsidies, this initiative has led to a remarkable resurgence in home appliance sales as well as a significant uptick in retail sales of passenger vehicles.
During the recent National Day holiday, I toured various home appliance stores across the country and observed a wave of promotions that ignited strong demand for new appliances.
In Jiangsu province, a special campaign focusing on green and energy-efficient appliances has been introduced, enhancing national subsidies for eight key categories of appliances and expanding to cover an additional nine types. These include air purifiers, microwaves, induction cookers, rice cookers, fans, home freezers, dishwashers, water purifiers, and smart toilets. Shoppers can benefit from subsidies ranging from 15% to 20% off the purchase price of each item, with a maximum subsidy of 2,000 yuan per transaction.
Not only are home appliance stores buzzing with activity, but the home renovation market is also thriving during the holiday season. In Shanghai, 52 subsidy policies for home appliances and furnishings have been rolled out, covering 60 different categories, including building materials. Notably, products designed for elder care are now part of the subsidy offerings, providing consumers with a 15% discount on these items.
According to the Ministry of Commerce, during the seven days of the National Day holiday, about 2.52 million consumers purchased 3.75 million units across the eight subsidy categories, resulting in sales of approximately 17.83 billion yuan. Since the introduction of the appliance replacement policy, over 8.24 million consumers have bought 11.78 million units, leading to sales that have surpassed 55.79 billion yuan.
The old-for-new policy is also driving excitement in the automobile market. As of October 7, the Ministry of Commerce’s car replacement platform has received more than 1.27 million subsidy applications, contributing to over 160 billion yuan in new car sales, with more than 60% of these requests for new energy vehicles.
Mr. Chen, a resident of Yongzhou in Hunan province, recently discovered that trading in his old car for a new one would not only make him eligible for a subsidy of up to 20,000 yuan but also unlock special offers from dealerships.
“I’ve been driving my old car for eight years, and I’m very satisfied with its power, handling, and comfort. When I found out about the government’s generous ‘old-for-new’ policy, I chose my new vehicle without hesitation,” Mr. Chen shared.
Local governments are not just offering economic benefits but are also simplifying the car purchasing process. Automakers are providing “one-stop services” that ease consumers’ concerns about complicated paperwork, with dedicated staff assisting throughout the transition from the old car handover to the new car pickup.
In Zaozhuang, Shandong province, residents can apply for both auto replacement and scrapping subsidies through their mobile phones, with the scrapping subsidies being progressively distributed.
Li Yang, Deputy Director of the Investment Promotion Service Center in Zaozhuang’s municipal district, noted, “So far, we’ve approved the scrapping of 1,409 vehicles, which includes 1,143 new energy vehicles and 266 gasoline vehicles.”
