Trade-in subsidy aims to drive more consumption

China's latest move to support consumer goods trade-in programs and large-scale equipment renewal in 2026 will help further stimulate consumption and upgrade industries, creating new growth drivers for the economy, said market watchers and executives of multinational companies.

The government has allocated 62.5 billion yuan ($8.94 billion) in ultra-long special treasury bond funds in advance to support the trade-in program for consumer goods for 2026, according to a notice jointly released by the National Development and Reform Commission and the Ministry of Finance early this week.

The two government branches also issued a joint announcement on Tuesday, detailing measures for the implementation of large-scale equipment renewal and consumer goods trade-in programs in 2026.