Calling all smartphone seekers: China to subsidise personal devices, expand trade-in push

In a bid to galvanise business and shore up weak consumption, last year’s trade-in programme is being expanded, making it a good time to save on electronics

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China will subsidise purchases of personal devices such as smartphones this year. Photo: Reuters

Published: 5:30pm, 3 Jan 2025

China will subsidise consumers who purchase new smartphones this year, in the latest attempt to elevate the country’s sluggish domestic consumption as external uncertainties are set to mount.

The country’s nationwide consumer trade-in programme, funded by sovereign bonds, will be expanded to personal digital products, including smartphones and tablets, as well as smartwatches and bracelets, its top economic planner announced on Friday.

Yuan Da, deputy secretary general of the National Development and Reform Commission, said at a press conference that China will “significantly increase the scale of ultra-long-term special treasury bonds” to support the expansion of consumer goods trade-ins and industrial equipment upgrades in 2025.

The NRDC will optimise the allocation of funds by favouring areas with better results achieved in the trade-in programme last year, Yuan said.

It will also simplify the subsidy process to reduce the liquidity pressure on enterprises, while strengthening fund supervision, he added.

By the end of August, Beijing had disbursed 150 billion yuan (US$20.55 billion) to local governments to subsidise consumer purchases of home appliances and electric cars.

The move injected some energy into weak domestic consumption that has impeded China’s economic recovery, as a large share of household wealth has been trapped in the dwindling property and stock markets.