China to Expand Consumer Subsidy Program to Urban Areas
May 26, 2009
Following the implementation of PC and home appliance subsidy program for rural areas in 31 provinces in early 2009, China's State Council decided on May 19 to expand the program to selected urban areas, according to Xinhua News. The Chinese government plans to spend two billion RMB (US$294.1 million; US$1=6.8 RMB) on subsidizing the purchase of new home appliances in replacement of old ones. Products eligible for subsidization include TVs, PCs, refrigerators, air conditioners, and washing machines. Initially a pilot program will be launched in five cities - Beijing, Shanghai, Tianjin, Fuzhou, and Changsha - and four coastal provinces of Guangdong, Jiangsu, Shandong, and Zhejiang. Along with the expansion of home appliance subsidy program, the State Council also decided to raise the budget for automobile replacement subsidies from one billion RMB (US$147.1 million) to five billion RMB (US$735.3 million), according to Xinhua News.