China rolls out trade-in funding for 2026 as campaign to spur spending continues

China has unveiled the details of an extension to its popular consumer goods trade-in scheme, a policy which has helped to fuel short-term boosts in consumption and contributed to the achievement of nationwide targets for economic growth.

On Tuesday, the National Development and Reform Commission (NDRC) – the country’s top economic planner – announced with the Ministry of Finance that 62.5 billion yuan (US$8.93 billion) in ultra-long-term special bonds would be fast-tracked to local governments to support the programme for the first quarter of 2026, with subsequent funding to be disbursed quarterly.

The fund will continue to subsidise bedrock consumer sectors such as automobiles and home appliances, and has added tech-enhanced products such as smart glasses and smart home devices to its coverage range.

This initial round of funding, however, is lower than the amount that was distributed at the same time last year. In 2025, the money was distributed in four batches, with 81 billion yuan in the first quarter and the year’s total disbursements reaching 300 billion yuan.

Beijing will also continue to subsidise equipment upgrades and renewals for manufacturers. On top of last year’s sectors, subsidies will be further expanded to cover the refurbishment of old residential communities, elderly care institutions and commercial complexes.

Zou Yunhan, deputy director of the Macroeconomic Research Office under the State Information Centre – an NDRC think tank – said on Tuesday that the 2026 policy represents an optimised upgrade of the 2025 framework and aims to meet essential consumer needs while supporting stable consumption.

“By including smart products, the policy accelerates the integration of artificial intelligence and other new technologies into everyday life,” Zou was quoted by state broadcaster CCTV as saying.

South China Morning Post