Asia Express - Consumer Electronics
China Unveils Large-Scale Initiative to Stimulate Consumption and Economic Growth Through Equipment and Consumer Goods Renewal
March 22, 2024
The State Council of China has unveiled an action plan aimed at fostering large-scale equipment renewal and trade-ins of consumer goods, particularly household appliances or white goods, with the goal of stimulating consumption and bolstering China's economy, according to a report by China Daily dated March 20.
In addition to incentivizing the replacement of aging and obsolete household appliances, the plan includes provisions for offering subsidies to consumers who opt for environmentally friendly and intelligent home appliance replacements. By 2027, the plan targets a more than 25 percent increase in the investment scale of equipment across various sectors including industries, agriculture, construction, transportation, education, culture, tourism, and healthcare, compared to 2023.
Data from the Ministry of Commerce indicates that as of the end of 2023, the cumulative number of household appliances in major categories such as refrigerators, washing machines, and air conditioners had surpassed 3 billion units, underscoring significant potential for renewal and replacement. Sales in China's white goods sector surged to 849.8 billion RMB (approximately US$118.0 billion) in 2023, marking a year-on-year increase of 3.6%.
Concurrently, domestic manufacturers of white goods are intensifying their focus on artificial intelligence (AI) and chip technologies, a move expected to catalyze technological advancements across the industry.