These initiatives have also spurred a significant rise in the purchase of electric vehicles and electric bikes, which now benefit from trade-in programs.

Retail sales of new-energy passenger vehicles have surged by over 20 percent, reflecting the positive impact of the subsidy and trade-in initiatives.

Under this scheme, each consumer can receive a maximum subsidy of 500 yuan for one item per product category.

As of mid-February 2025, over 26.7 million consumers have applied for these subsidies, indicating strong interest in the supported products.

A newly extended subsidy scheme now offers a 15 percent rebate on digital products like smartphones, tablets, and smartwatches priced under 6,000 yuan (approximately US$828).

In 2025, China has made a strategic shift to stimulate consumer spending as part of its long-term economic recovery efforts.

This initiative includes enhancing consumer products trade-in programs and subsidy schemes, which have successfully increased sales across various sectors.

Additionally, the scrapping of old vehicles has increased by approximately 35 percent year-on-year, showcasing the effectiveness of the trade-in programs.