China's plan to boost consumption by encouraging trade-ins has yet to show results

Published On Sep 12, 2024, 7:10 PM

China's initiative to enhance consumer spending through a trade-in program has not yet yielded significant outcomes following its announcement in late July. Though the government allocated approximately 300 billion yuan to subsidize trade-ins for cars and appliances, executives from various companies report a lack of concrete incentives from this program. The EU Chamber of Commerce in China highlighted that local governments are only beginning to detail these trade-in policies. Analysts predict that this scheme will only marginally benefit retail sales, with estimates suggesting it could support about 0.3% of retail sales in 2023. Companies like Otis and Kone also expressed cautious optimism for future opportunities as the rollout of this initiative progresses.