China will significantly increase funding for equipment upgrades and consumer goods trade-in programs in 2025, with a particular focus on subsidizing digital product purchases, as part of a broader strategy to bolster domestic demand and drive economic recovery.
This initiative includes subsidies for consumers purchasing mobile phones, tablets, smartwatches and wristbands.
The announcement came during a government press conference on Friday, where Yuan Da, deputy secretary-general of the National Development and Reform Commission (NDRC), outlined the government’s plans. The increased funding will be supported by an issuance of ultra-long special treasury bonds.
Expanded funding support
The scope of funding support will be expanded to include areas such as electronic information, production safety and agricultural facilities.
In addition to digital products, the government will further increase subsidies for upgrading new energy city buses, batteries, agricultural machinery and home decoration-related consumer goods.
The new funding builds upon an action plan launched in March 2024 to promote large-scale equipment renewal and trade-ins, aiming to stimulate domestic consumption and support economic growth. Yuan noted that these programs have effectively shored up investment, boosted household consumption and accelerated the green transition over the past year.
Confidence for future development
While acknowledging the complex and severe external environment and the new difficulties and challenges facing the Chinese economy in 2025, Yuan expressed confidence in the country’s economic prospects.
He emphasized China’s stable foundation, multiple advantages, strong resilience and great potential. He also highlighted the positive impact of ongoing reforms, the development of new quality productive forces, and efforts to boost domestic circulation.
Yuan further noted that the effects of policies introduced in the past year will continue to be evident, and that ample space remains for macro policies, along with richer macro-control tools, to provide strong support for achieving the 2025 economic growth targets.
“We are full of confidence in promoting the continuous recovery of the economy in 2025, and also fully confident in completing the goals and tasks of the 14th Five-Year Plan with high quality,” Yuan said.