China is intensifying efforts to drive large-scale equipment upgrades and trade-in deals for consumer goods, with plans to enhance supervision of funding and clamp down on deceptive market practices. This initiative aims to stimulate consumer spending and support economic recovery, according to Li Chao, a spokeswoman for the National Development and Reform Commission (NDRC), speaking at a press conference on Tuesday.
The new phase of the policy will focus on ensuring the swift delivery of projects and combating market malpractices, such as misleading pricing tactics and false promotions. Li emphasized the need for evaluations to support policies that promote equipment upgrades and trade-in programs, with plans to expand these initiatives based on successful experiences.
The policy is already yielding positive results, particularly in consumer spending on home appliances and industrial equipment. In October, sales of home appliances and audiovisual equipment surged nearly 40 percent year-on-year, contributing to China’s broader economic recovery. The NDRC reported that investment in equipment purchases rose 16.1 percent in the first 10 months of the year, accounting for over 60 percent of overall investment growth.
China’s retail sales also saw a significant uptick, growing 4.8 percent in October compared to 3.2 percent in September. The increase in consumer spending is attributed to the government’s cash-for-clunkers program, which has been funded by 150 billion yuan ($21 billion) in ultra-long-term bonds.
Experts predict that China’s economy will continue to show resilience, with consumption and investment strengthening in the final months of the year. Zhou Maohua, a researcher at China Everbright Bank, expressed confidence that the country will meet its 5 percent annual economic growth target, thanks to countercyclical policies introduced since September.
Looking ahead, Li from the NDRC stated that China is expected to maintain its economic recovery momentum through November and December, with ongoing policy measures and new initiatives supporting growth. She also highlighted China’s strong economic outlook for 2025, driven by structural reforms and a vast domestic market, which remains a significant asset in the nation’s long-term economic strategy.