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
A beneficial international environment helped boost the development of China's auto industry, and achieving common prosperity with the host countries should be a principle for Chinese auto companies to go overseas, said Li Shufu, chairman of China's leading automaker Geely Holding Group.
Li made the statement in an interview with China Global Television Network (CGTN) in Hangzhou, capital of the eastern province Zhejiang, where Geely is headquartered.
He said that besides the existence of a beneficial international environment, a large inflow of global investment also significantly contributed to boosting China's auto industry in the early years of its development.
"Most importantly, the international environment brought about the opportunities for development and China seized these opportunities. Against this backdrop, international capital, talent and technology, as well as global automotive players, came to invest and develop business in China. Additionally, both upstream and downstream industrial chains also set up operations, made investment and pursued development in China. The national policies were also inclusive and were aimed at expanding opening up, allowing enterprises such as Geely to participate in the development of the automotive industry. The inclusive national policies helped boost the development of China's auto industry," Li said.
"Later on, China's auto industry drew more private and foreign capital. Driven by vigorous competition among all players, the entire industrial chain gradually became China-based, and an ecosystem took shape across the sector," he said.
Li said that over the past few decades, as China's auto industry pursues intelligent and electric transformation, strong supports have been given by both central and local governments.
"Especially over the past decade and more, the Chinese government has offered unprecedented support for intelligent and electrified transformation of the auto industry. I think, few governments around the world have ever given the sector such strong support, and they have been given by both central and local governments. It is because of all these forces that China's auto industry has become what it is today," he said.
Li said that as more and more Chinese automakers choose to set up operations in overseas markets, achieving shared prosperity with the host countries become increasingly critical.
"If Chinese automakers want to go abroad, they must pursue localization, whether entering Europe or other markets. Based on my experience and the lessons I have learned, Chinese brands must deliver prosperity to the local economy, boost local employment, and support the host country's sustainable development," he said.
"As Chinese enterprises expand overseas, they must act in a friendly, law-abiding, compliant, fair and transparent manner. They should not only fulfill social responsibilities and advance corporate sustainable development, but also help generate good economic development, thereby achieving shared prosperity and win-win growth with the host countries. I believe this is a fundamental prerequisite for Chinese auto companies to pursue localization and to compete globally," he noted.
"If we are friendly and cooperative, the host countries can feel that we come to extend support and make contribution, rather than exploit or fight with them," according to Li.
Chairman of China's leading automaker speaks on industry development, overseas market strategy
