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CNBC AI News: The Chinese government is injecting further stimulus into its consumer market with a fresh round of subsidies aimed at encouraging the replacement of older goods. According to reports from state media, the National Development and Reform Commission (NDRC) has confirmed that the utilization of existing subsidies for the “trade-in” program is progressing as anticipated.
A substantial ¥138 billion (approximately $19 billion USD) in central government funds is earmarked for release in the third and fourth quarters of the year. This follows the distribution of ¥162 billion in the first and second quarters.
The program, which is part of a broader initiative, allocates ¥300 billion in central government funds to promote the replacement of consumer goods. The program is set to continue throughout the year.
According to the NDRC, the current utilization of these subsidies is roughly 50% of the total planned for the year, indicating that the program is on track.
The Ministry of Finance and the NDRC plan to disburse the remaining funds in July and October of the current year, to further support the trade-in scheme. Local governments are also expected to provide supporting funds, contributing to the overall impact of the program. Implementation will be optimized to ensure the smooth and balanced distribution of funds throughout the remainder of the year.
The program covers a wide range of consumer products, including appliances, electronics, and automobiles. Subsidy amounts include a maximum of ¥2,000 per item for appliances and digital products, ¥500 per unit for mobile phones, and up to ¥15,000 for replacing older vehicles with new energy vehicles.
Reports indicate that the subsidies are simply paused, and will be resumed later in the year.
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