Mainland China’s Ministry of Commerce detailed a new subsidy scheme for digital products on Wednesday, announcing effective discounts of up to 500 yuan (nearly US$70) on eligible items for shoppers, state-run news agency Xinhua reports.
Part of a broader push to boost sluggish consumer spending, the scheme covers new smartphones, tablets and smartwatches or wristbands priced below 6,000 yuan (about US$835). Buyers are entitled to 15 percent off the advertised price, up to a maximum of 500 yuan. Each individual can apply the subsidy to one item per category.
Domestic and foreign brands will be subsidised equally when the scheme launches on 20 January, officials say.
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An official trade-in scheme on home appliances was also expanded earlier this year, to cover microwave ovens, water purifiers, dishwashers and rice cookers.
Xu Tianchen, a senior economist at the Economist Intelligence Unit, told Reuters that the government was expected to double its subsidy payouts in 2025, compared with 2024, amounting to a total of 300 billion yuan for the year. “This marks a policy pivot towards more consumption,” he said.
Weak household spending has become a major issue for the mainland, with analysts calling for urgent measures to increase demand through tax cuts, lowering the cost of goods and wage increases – as were reportedly rolled out for certain government workers at the start of January.
