China’s consumption subsidy program has fueled demand for high-end digital products -- including home appliances, automobiles, and electronics -- boosting sales and reshaping consumer habits and market dynamics.
China’s central government has allocated over 300 billion yuan (about 40 billion U.S. dollars) in 2025 to extend the subsidy program launched last year. Since January, the initiative has expanded to include electronic devices, further stimulating consumption.
A phone store in Beijing has seen a steady stream of customers drawn by the price reductions.
"With lower prices, everyone wants to upgrade," observed one customer.
"The discount is good. I'm satisfied with this deal," added another buyer.
"Getting a real discount makes a difference, since people are more cautious with spending these days," noted a customer reflecting on broader spending habits.
Industry insiders say the subsidies have motivated consumers to upgrade their products, encouraging even traditionally cautious buyers to embrace innovation.
Sales personnel have reported a rise in high-end product sales, indicating a shift from price-driven purchases toward a focus on quality and technological advancement.
"Many consumers initially came in for mid-range models. But after learning about the subsidies, they realize they can get a higher-performance model without significantly exceeding their budget. So, they usually opt for the higher-end ones," said Xue Long, a store manager at Suning Group, one of China’s major retailers.
In addition, the subsidy policy is fostering more proactive consumer habits and accelerating structural upgrades, according to industry insiders.
"Once people experience high-end, energy-efficient, or smart products, they are more likely to continue choosing better-quality options, raising overall market standards," said Zhang Yanguang, manager of Suning Group's Beijing Regional Management Center.
Experts believe the policy goes beyond a simple discount initiative. As more people embrace innovation, the market is expected to shift toward a more tech-driven and sustainable future.
China's subsidy program fuels demand for high-end digital products
Chinese Foreign Minister Wang Yi and his Argentine counterpart, Pablo Quirno, on Friday pledged to solidify the comprehensive strategic partnership and deepen cooperation across multiple sectors.
During their meeting on the sidelines of the Munich Security Conference, Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, recalled Chinese President Xi Jinping's meeting with Argentine President Javier Milei in 2024 and said China is ready to fully implement the consensus reached by the two heads of state to improve the well-being of the two peoples.
The two sides should remain committed to the right direction of bilateral relations, he said, calling for enhanced friendly exchanges at all levels and firm support for each other on issues concerning core interests.
He emphasized the resilience of bilateral ties between China and Argentina over the past 54 years since diplomatic relations were established, noting that the two countries have always respected each other and treated each other as equals, and the relationship has weathered international changes with remarkable vitality.
Noting that China and Argentina are economically complementary with a solid foundation for practical cooperation, Wang proposed deepening collaboration in economy and trade, technology, finance, and mining, and welcomed Argentina to utilize platforms such as the China International Import Expo and the Canton Fair to bring more quality products to the Chinese market.
He also expressed hope that Argentina would provide a fair, transparent, and non-discriminatory business environment for Chinese enterprises, and welcomed Argentine citizens to take advantage of the visa-free policy for trips to explore China.
"China's development and growth represent a reinforcement of peace and stability in the world," Wang said. "We never engage in geopolitical contests, nor do we ask other countries to take sides. China-Argentina cooperation is not targeted at any third party, nor should it be disrupted by any third-party factors."
For his part, Quirno said Argentina and China are each other's major trading partners and enjoy a comprehensive strategic partnership, stating that Argentina has benefited significantly from cooperation with China.
He also conveyed gratitude for China's valuable support on the sovereignty issue of the Malvinas Islands and for its assistance during Argentina's economic difficulties. Quirno reaffirmed Argentina's firm commitment to the one-China principle.
The Argentine foreign minister expressed hope for closer exchanges with China and deeper cooperation in trade, energy, mining, and finance. He welcomed Chinese enterprises to invest and operate in Argentina.
China, Argentina pledge mutual support on core interests, deeper economic cooperation
