China Allocates 62.5 Billion Yuan for 2026 Consumer Goods Trade-in Program

China Boosts Consumer Spending with 62.5 Billion Yuan Trade-in Fund

Beijing, China – China has announced the allocation of 62.5 billion yuan (approximately $8.9 billion USD) from ultra-long special treasury bond funds to support its consumer goods trade-in program for 2026. This significant financial injection, reported by state news agency Xinhua on Tuesday, December 30, 2025, is intended to invigorate domestic consumption and bolster economic growth amidst ongoing economic and trade pressures.

The funds, representing the first tranche for the 2026 scheme, were initiated by the National Development and Reform Commission (NDRC) and the Ministry of Finance. The government's objective is to ensure policy continuity and capitalize on anticipated consumer demand during the upcoming New Year and Spring Festival holidays.

Expanded Scope of Subsidies for 2026

The consumer goods trade-in program, initially launched in 2024, will see an expanded scope in 2026 to include a wider array of products. A joint statement from China's state planner and finance ministry detailed the categories eligible for subsidies:

• Digital and Smart Products: For the first time, items such as smartphones, tablets, smartwatches, smart wristbands, smart glasses, and other smart home products will qualify. Consumers purchasing these items can receive a 15% rebate, capped at 500 yuan per item.
• Major Home Appliances: Subsidies will continue for six categories of major home appliances, including refrigerators, washing machines, televisions, air conditioners, computers, and water heaters. Buyers of Grade-I energy-efficient products can receive a 15% subsidy, up to 1,500 yuan per item.
• Automobiles: Incentives remain for vehicle trade-ins. Buyers scrapping old cars will receive subsidies equivalent to 12% of the purchase price of new energy vehicles (NEVs), capped at 20,000 yuan. Those replacing older vehicles with new NEVs will receive an 8% subsidy, up to 15,000 yuan.

Economic Context and Previous Impact

This initiative is a crucial component of Beijing's broader strategy to stimulate domestic demand and rebalance the economy towards consumption, addressing challenges such as weak growth momentum, declining investment, sluggish industrial output, and deflationary pressures. In 2025, China had allocated a total of 300 billion yuan in special treasury bonds for the trade-in scheme.

The program has already demonstrated positive effects. From January to November 2025, consumer goods trade-in programs drove sales exceeding 2.5 trillion yuan and benefited over 360 million consumers, according to data from the Ministry of Commerce. These efforts underpinned the purchase of 11.2 million vehicles, 128.4 million home appliances, and 90.2 million digital products. The government aims to guide local authorities in effectively leveraging these funds to ensure an improved and orderly implementation of the program.