Guangdong increases subsidies to facilitate trade-in of old consumer goods

On August 29, Guangdong Province unveiled an implementation plan for using ultra-long-term special treasury bond funds to support consumer goods trade-in.

As a significant step to energize Guangdong's consumer market, the plan, spearheaded by the Department of Commerce of Guangdong Province, marks a new chapter in the province's economic strategy.

The work on equipment renewal and replacing old consumer goods with new ones (known as "Two New") is a key focus in Guangdong's current economic agenda. The issuance of the Plan aims to utilize national support for local consumer goods trade-ins through ultra-long-term special treasury bond funds. 

This financial boost is expected to leverage fiscal funds to stimulate consumption and production effectively. The Department of Commerce of Guangdong Province, the Guangdong Provincial Development and Reform Commission, and the Department of Finance of Guangdong Province will take the lead in organizing and implementing the specific tasks outlined in the plan.

The Plan particularly supports trade-ins in eight consumer goods sectors, including home appliance trade-ins, vehicle scrapping and renewal, outdated commercial vehicle scrapping and renewal, new energy bus and power battery updates, old agricultural machinery scrapping and renewal, personal consumer passenger vehicle trade-ins, electric bicycles, and home renovation and upgrades for kitchen and bathroom, as well as home suitability for the elderly.

Notably, the plan increases subsidy efforts for home appliances and new energy vehicles. The maximum subsidy ratio for a single item can reach 20%, with the highest subsidy amount capped at 2,000 yuan. Mobile phones, tablets, and smart wearable devices are also included in the subsidy scope. The subsidy for individual consumers scrapping and renewing new energy vehicles has been raised to 20,000 yuan, while that for fuel vehicles is set at 15,000 yuan.

The subsidies have been designed to be more flexible and accessible. Offline, consumers can log in to the Guangdong "Yue Huan Xin" platform (please refer to the link attached for further information) to claim subsidies. When purchasing designated home appliance products, presenting the payment code allows for a seamless subsidy experience. Online, a "Guangdong Zone" for trade-ins will be established on major e-commerce platforms, making it more convenient for everyone to enjoy trade-in subsidies.

(Relevant information on the "Yue Huan Xin" platform: Equipment renewal and trade-in of old consumer goods: a brand-new platform launched)

To support the "Two New" works, the Plan also simplifies the review process and flexibly allocates funds. The application and review time will be shortened, and the progress of fund disbursement accelerated. A mechanism for the flexible allocation of funds will be established, adjusting the fund quota in a timely manner according to the progress and effectiveness of fund use in various cities. The plan strengthens fund supervision by strictly prohibiting the retention, occupation, and misappropriation of funds.

In order to better advance the "Two New" works, Guangdong Province also encourages innovative models. Financial institutions are encouraged to use financial tools to enrich consumer financial products, creating a multiplier model of "government subsidies + financial support + corporate concessions". 

Looking ahead, Guangdong Province will step up its strategic moves to stimulate the consumer market through innovative subsidy programs and streamlined processes, reflecting the province's commitment to economic vitality and consumer welfare.

cnbayarea.org.cn & GDToday