The latest value-added tax (VAT) invoice data released by China's State Taxation Administration reveals robust growth in enterprise equipment updates in the first three quarters of this year, driven by expanded policies on large-scale equipment renewal and consumer goods trade-ins.
From January to September, the value of enterprises' purchases of machinery equipment increased 9.4 percent year on year in the period, according to data released on Thursday.
The high-tech manufacturing sector maintained strong growth momentum, with equipment procurement increasing by 14 percent. Notably, purchases of digitized equipment climbed 18.6 percent, signaling a strong shift toward digital transformation among businesses.
The investment in equipment renewal in the information and technology industries has been also expanded. The information transmission, software, and IT services industry saw a 26.8 percent year-on-year increase in mechanical equipment procurement, while the scientific research and technical services industry grew 32.5 percent.
Meanwhile, the trade-in programs for consumer goods have encouraged public spending. In the first three quarters of this year, retail sales revenue for home appliances grew by 48.3 percent and furniture retail increased by 33.2 percent year-on-year, respectively. The newly expanded retail sector for communication devices, such as mobile phones, witnessed sales revenue growth by 19.9 percent year-on-year.
The trade-in programs have also boosted China's car consumption. The data shows that the sales of new energy vehicles surged 30.1 percent year on year in the first three quarters of 2025.
China's VAT data shows growing spending on equipment renewals by firms
Japan's House of Councillors, the upper house of the National Diet of the country, passed a supplementary budget for fiscal year 2025 at a plenary session on Tuesday, pushing defense spending to a record high.
Since the House of Representatives, the lower house, has already passed the supplementary budget, the approval of the supplementary budget by the House of Councillors means it has been enacted by the National Diet.
The supplementary budget allocates an additional 1.1 trillion yen (about 7.7 billion U.S. dollars) for defense. Combined with the previously approved 9.9 trillion yen (about 69.2 billion U.S. dollars) defense budget, Japan's total defense spending for fiscal year 2025 reaches approximately 11 trillion yen (about 77 billion U.S. dollars), accounting for about 2 percent of its GDP, a record high that has drawn questioning and strong opposition from various quarters within Japan.
In fact, the increase in defense-related expenses had already sparked questioning and opposition when the government submitted the supplementary budget to an extraordinary Diet session on December 8.
Japanese citizens have rallies recently in various parts across the country, strongly protesting the government's disregard of public welfare and its continued advancement of military expansion.
"Japan's military spending has continued to increase while social security contributions are being cut. I oppose this move as we are not paying taxes to fund military expansion," said a protester.
In recent years, Japan has repeatedly breached the constraints of its postwar pacifist constitution, significantly increased its defense budget, promoted the export of lethal weapons, and plotted to revise the Three Non-Nuclear Principles.
The Three Non-Nuclear Principles, not possessing, not producing and not allowing introduction of nuclear weapons into Japanese territory, were first declared in the Diet, Japan's parliament, by then Japanese Prime Minister Eisaku Sato in 1967 and viewed as a national credo.
Japan passes supplementary budget, pushing defense spending to record high
