AsianFin -- China will broaden its consumption subsidy program to include smartphones and other electronics, aiming to stimulate domestic spending as external economic pressures grow.
Officials from the National Development and Reform Commission announced on Friday that the current trade-in initiative, which applies to home appliances and cars, will expand this year to cover personal devices such as smartphones, tablets, and smartwatches.
Chinese consumers have been holding onto their smartphones longer post-Covid, driven by fewer compelling new features and tighter budgets. The expanded subsidies are expected to rejuvenate the world’s largest smartphone market, benefitting major brands like Huawei Technologies Co. and Xiaomi Corp., while boosting sales on e-commerce platforms such as Alibaba Group Holding Ltd. and JD.com Inc.
This initiative aligns with China’s broader strategy to encourage domestic consumption, offsetting potential impacts from additional U.S. tariffs on Chinese exports. For only the second time in over a decade, top leaders prioritized stimulating spending and domestic demand during their recent economic planning for 2025.
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