With the aim of encouraging more household purchases of home appliances in order to increase domestic consumption which will, in turn, boost the economy, earlier in the week China announced plans of implementing new policies.
These subsidies would apply for home appliances that meet environment standard and a certain energy-consumption, subsidizing up to 13% of the product’s price tag but no more than RMB 800 per item, as per a document from the National Development and Reform Commission.
Back in the previous year, marking the slowest pace since 1990, China’s economy grew at 6.6%, triggering a series of responses by the government such as tax cuts and liquidity injections to stimulate growth in the country.
Additionally last year, traditional home appliance sales recorded a slowdown with analysts expecting that the industry may see its first decline in a decade in 2019 amid slowing economic growth and property sales with some calling for the government to bring back household appliance subsidies that were used to stimulate the economy during the Global Financial Crisis.
In a bid to subsidize home appliance sales, various local governments have reportedly already initiated steps.
Back in the first month of this year, three-year subsidies for 15 different products ranging from between 8% to 20% of the purchase price was announced by the Beijing municipal government.
As per reports, the possible implementation of similar policies is also being studied by governments in Hebei, Hunan, and Zhejiang.