China Expands Consumer Trade-In Program

The Chinese government has expanded its consumer trade-in program to include kitchen appliances such as microwave ovens, dishwashers, rice cookers, and water purifiers, offering discounts of up to 20% to stimulate the economy. This initiative, part of a broader effort to address weak consumer demand and a deepening property crisis, has seen 81 billion yuan allocated for 2024. The National Development and Reform Commission reports positive effects on sales of big-ticket items like home appliances and cars since the scheme's launch in March. However, economists express skepticism about its long-term impact on overall consumer spending, describing the results as mixed. A key meeting in December emphasized the necessity of vigorous efforts to boost consumption amid geopolitical tensions, including potential tariffs from the incoming U.S. administration. China's economic growth figures for 2024 are expected to be around 5%, indicating a cautious outlook amidst ongoing challenges.