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China's renewal policies deliver strong boost to investment, consumption, green transition: official

China

China

China

China's renewal policies deliver strong boost to investment, consumption, green transition: official

2026-01-20 12:25 Last Updated At:18:57

China's renewal policies on large-scale equipment upgrading and consumer goods trade-ins have helped boost investment, consumption and green transition, according to an official with the National Development and Reform Commission (NDRC) on Tuesday.

Speaking at a press conference in Beijing, Wang Shancheng, director of the Department of Resource Conservation and Environmental Protection at the NDRC -- China's top economic planner, said the renewal policies have produced significant results since the policies were launched in 2024, and briefed on how the policies were implemented in the year 2025.

"In 2025, funds from ultra-long special treasury bonds supported about 8,400 such projects, leading to a total investment of over 1 trillion yuan (about 143.6 billion U.S. dollars), and driving a year-on-year increase of 11.8 percent in investment in the purchase of equipment and tools, resulting in an increase of overall investment by 1.8 percentage points. In 2025, more than 360 million applications were filed for consumer goods trade-in subsidies, leading to the sales of related goods valued at over 2.6 trillion yuan (about 373.5 billion U.S. dollars), and directly raising the growth rate of total retail sales of consumer goods by 0.6 percentage points," Wang said.

He noted the policies have indirectly contributed to stepping up the country's green development.

"Since the implementation of policies on large-scale equipment upgrades and consumer goods trade-in programs, improvement of the waste-recycling system has been sped up. Over 29,000 new smart recycling facilities have been installed in residential communities across the country. The level of standards for energy conservation and carbon reduction has been steadily elevated. All 294 sets of national standards related to the policies in energy consumption and emissions have now all been issued. The promotion of green and low-carbon products has been stepped up, with new energy vehicles accounting for nearly 60 percent of overall auto purchases, and with the sales of home appliances rated as Level-1 energy efficiency and water efficiency ones making up more than 90 percent of overall home appliance sales. The implementation of the policies has helped save over 69 million tonnes of standard coal and cut carbon emissions by more than 170 million tonnes," Wang said.

"The arrangements for implementing the same policies in 2026 have already been made public, with further optimizations in the range of the policy support, subsidy standard and implementation mechanism. The first sum of 62.5 billion yuan (about 8.98 billion U.S. dollars) in funds raised from the issuance of ultra-long special treasury bonds for supporting consumer goods trade-in programs has been allocated. Local authorities began rolling out the consumer good trade-in programs on January 1 to ensure a smooth policy transition and seamless continuation," said the official.

China's renewal policies deliver strong boost to investment, consumption, green transition: official

China's renewal policies deliver strong boost to investment, consumption, green transition: official

China will enhance its equipment upgrading and trade-in programs in 2026 to boost domestic demand, the National Development and Reform Commission (NDRC) announced on Tuesday.

Regarding promoting large-scale equipment upgrades and replacing old consumer goods with new ones, significant progress was reported in 2025. In the past year, ultra-long-term special government bond funds were arranged to support approximately 8,400 equipment-upgrading projects, stimulating total investments exceeding 1 trillion yuan (about 143.5 billion U.S. dollars). Over 360 million people applied for subsidies under the consumer goods trade-in scheme, leading to sales of related goods surpassing 2.6 trillion yuan.

Wang Shancheng, director of the Department of Resource Conservation and Environmental Protection at the NDRC, said at a press conference that the Implementation of these measures will continue to be optimized in 2026.

"We will further lower the investment threshold for application projects, increase support for small and medium-sized enterprises, expand policy coverage, implement the requirements for building a unified national market, and implement unified subsidy standards nationwide for the scrapping and replacement of vehicles, trade-in of six categories of home appliances, and four categories of digital and smart product purchases," said Wang.

The NDRC representative also highlighted that in 2026, efforts will focus on comprehensively expanding domestic demand. An implementation plan to expand domestic demand for the 2026-2030 period will be formulated. Furthermore, the NDRC will promote upgrades in key industries, explore establishing a national-level mergers and acquisitions fund, and cultivate and bolster emerging and future industries.

China to enhance equipment upgrades and trade-in programs in 2026

China to enhance equipment upgrades and trade-in programs in 2026

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