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
China's expanding ties with the Global South have pushed trade growth far beyond the global average despite the tariff pressure from the U.S., according to experts.
"Whilst the Trump tariffs ultimately led to a significant drop-off in Chinese exports to the United States and vice versa, the trading relationships across much of the rest of the world continue to grow, and China's trading relationships across the Belt and Road Initiative countries, as well as with the Global South, more broadly speaking, has grown at rates far greater than global trade growth as a whole. And we see that evidenced by the latest data. When we break that down, we see that has been underpinned by the developments in high-technology products in particular, whether it's EVs, whether it's even in semiconductors, as well as photovoltaic panels, etc.," said Dr. Warwick Powell, an adjunct professor at the Queensland University of Technology, in a TV interview with China Global Television Network (CGTN) on Thursday.
"And you've got to look at the places where the growth is taking place. Africa, I think, is a very interesting case in point, because the kinds of things that China has been exporting and expanding in terms of its exports are all about African economic development -- its machinery, its energy systems, its technology, and this really goes to delivering on China's broader strategic ambition as an emerging great power to be an enabling great power, supporting the development of its partners around the world," he added.
Qian Jun, executive dean of International School of Finance at Fudan University, attributed the trade growth to Chinese firms' endeavor to tap into key regions like ASEAN, Latin America, the Middle East and Africa.
"The main increase of export comes from, as we have discussed, these new areas: The ASEAN economy -- southeast Asia remains the most important trading partner -- and also Latin America, the Middle East, and these [other such] new regions. So, the exporters of the Chinese companies are also very good at adjusting their destinies, their strategies, how to market their goods and services, so that the reliance on the U.S., for example, has gone down a lot," Qian said.
China's trade momentum increasingly powered by Global South: experts
