China's digital product market sees surge in sales as subsidy program takes effect

China's digital product market has received a major boost as the Ministry of Commerce rolled out a nationwide subsidy program on Monday, providing a 15 percent discount on eligible products, including smartphones, tablets, and smartwatches, which has fueled a surge in orders.

The new subsidy program, announced by the Ministry of Commerce on Jan. 15, gives a 15 percent discount on the sales price of eligible digital products priced below 6,000 yuan (around 835 U.S. dollars) per item. Each consumer can receive a maximum subsidy of 500 yuan (about 70 U.S. dollars) per product, with a limit of one subsidized item per category.

The subsidy program, which covers digital products such as smartphones, tablets, smartwatches, and wristbands, has ignited a wave of consumer excitement, driving a sharp increase in production orders across the industry. It has been implemented in 29 regions across China, including Beijing, and will gradually be rolled out in other places.

In Beijing, a leading digital products store is offering subsidies on over 400 products from multiple brands, providing customers with a wide range of options to take advantage of the discount.

The store sold 20 mobile phones within just two hours on Monday, a testament to the intense consumer interest in the subsidized products.

"We have prepared sufficient stock, with the stock volume being five times the usual level," said Liu Jincheng, staff member at the digital product store.

In Changxing County, east China's Zhejiang Province, mobile phone shops were bustling with buyers on Monday, many of whom were eager to take advantage of the subsidies to purchase their desired products.

"The total discount amounted to over 1,000 yuan (about 137 U.S. dollars), which is enough for me to buy a watch. The discount is quite generous," said Xu Siyan, one of the customers.

China's digital product market sees surge in sales as subsidy program takes effect

China has seen a surge in passenger traffic on New Year's Day, the first day of its three-day New Year holiday, with significant increases in short- and medium-distance travel and strong year-on-year growth in flight bookings.

Data showed that during the holiday period, short- and medium-distance travel is the main mode of travel in China's Yangtze River Delta, Pearl River Delta, and Chengdu-Chongqing regions, with trips crossing the New Year becoming a major highlight.

Domestic flight bookings for the holiday increased by 28 percent year on year, and international flight bookings increased by approximately 14 percent year on year, according to data from Umetrip, a popular Chinese flight travel application.

"During the New Year holiday, the popularity of winter escape trips to the south increased significantly compared to previous years. On the other hand, new destinations in the south are rapidly emerging. Flight bookings to cities such as Nanning, Jieyang, Quanzhou, and Huizhou all increased by more than 70 percent year on year, becoming highlights of holiday travel growth," said Zhao Nan, general manager of the industry development department at Umetrip.

In China's coastal province of Fujian, the province's maritime administration anticipates that 143 passenger ships will be in operation during the holiday, carrying over 380,000 passengers.

The Mini Three Links, which refers to small-scale trade, shipping and postal services between Fujian province, Kinmen Island and the Matsu Island group, are expected to carry over 20,000 passengers, an increase of more than 50 percent compared to the same period last year.

China sees travel surge on New Year's Day