China's newly unveiled trade-in subsidy for 2026 is driving consumption nationwide, with digital and smart-tech products flying off the shelves.
In Guangzhou, the capital city of south China's Guangdong Province, flocks of consumers head to home appliance and smartphone stores during the ongoing New Year holiday.
"I decided to buy [a new phone] as there's new subsidy policy. I got a discount of 650 yuan (about 92.90 U.S. dollars), and with the government subsidy, I saved more than 1,000 yuan," said Wu, the first consumer to redeem the 2026 national trade-in subsidy.
"Consumer engagement is very high now. For example, customer number today has increased by 300 percent compared to last weekend. Take this tablet as an example. This model with 12+516GB memory capacity costs 3,199 yuan, but the price drops to only 2,699 yuan after the subsidy. Devices at this price are currently the most popular among consumers," said Jin Long, a staff member at the offline store of Chinese e-commerce giant JD.com.
China on Wednesday released detailed policies for the 2026 home appliance trade-in subsidy program, along with incentives for the purchase of digital and smart products.
According to a notice jointly issued by the Ministry of Commerce and other government departments, individual consumers purchasing energy- and water-efficient household appliances will be eligible for subsidies of up to 1,500 yuan per item.
Eligible products include refrigerators, washing machines, televisions, air conditioners, water heaters, and computers, with the subsidy set at 15 percent of the final purchase price after discounts.
In addition, subsidies will cover certain digital and smart products, including mobile phones, tablet computers, smartwatches and smart bands, priced at no more than 6,000 yuan each. For these products, the subsidy will be capped at 500 yuan per item.
According to China's e-commerce giant Suning.com, its home appliance sales on Thursday increased by 175 percent compared to its average daily sales in December 2025.
China began rolling out subsidies for consumer goods trade-ins in 2024 to boost market confidence and stimulate domestic demand.
China's 2026 subsidy policies driving digital, smart product sales in New Year Holiday
