Key Highlights
- China’s Ministry of Commerce calls for enhancing subsidies in consumer goods trade-in program.
- The goal is to spur domestic consumption during the Spring Festival holiday.
- Data shows sales of home appliances and digital products have grown significantly under the subsidy program.
- Economist Cao Heping believes that consumption will play an increasingly important role in driving economic growth.
China’s Ministry of Commerce (MOFCOM) is ramping up its efforts to bolster domestic spending, especially during the upcoming Spring Festival holiday. On February 12, 2026, MOFCOM issued a notice urging provincial governments to enhance subsidies for consumer goods trade-in programs and use various channels to ensure effective implementation.
Enhancing Subsidies
The ministry specifically highlighted that during the nine-day holiday (from Sunday to February 23), efforts should be made to fully ensure consumers can apply for subsidies when trading in home appliances or purchasing new digital products through offline channels. Additionally, car trade-ins will also qualify for subsidies.
Consumer Response
A retail store manager surnamed Wang from Beijing’s Chaoyang District told the Global Times that consumer inquiries about trading in home appliances like televisions, fridges, and rice cookers are on the rise. “Thanks to national trade-in subsidies and other consumption vouchers, a refrigerator priced at around 14,000 yuan ($2,028) can now be purchased for just over 8,000 yuan,” Wang explained.
Data from MOFCOM
According to the ministry’s data, in January, sales of home appliances and digital products exceeded 15 million units under the subsidy program, with total sales revenue nearing 59 billion yuan. This surge reflects not only a boost in retail sales but also supports other sectors such as dining and entertainment by drawing shoppers back to brick-and-mortar stores.
Expert Analysis
Economist Cao Heping from Peking University stated that the lasting effect of the consumer goods trade-in program indicates great potential in China’s domestic market. He noted, “Domestic demand has become a key focus for international observers of China’s economy.”
Broader Economic Impact
The National Bureau of Statistics reported that retail sales of consumer goods climbed 3.7 percent year-on-year in 2025 to reach 50.1 trillion yuan, with the contribution rate of final consumption expenditure to economic growth standing at 52 percent, up 5 percentage points from the previous year.
Looking ahead, Cao predicted multiple favorable factors will continue supporting steady consumption growth despite ongoing pressures and challenges. These include enormous potential in consumption upgrading, continuous effectiveness of pro-consumption policies, and improvement in the consumer environment.
The government’s push for enhancing trade-in programs underscores its commitment to bolstering domestic consumption during key holiday periods. As we head into 2026, these measures are expected to play a crucial role in driving economic growth and transformation in China.
