Key facts
- China will provide 62.5 billion yuan ($9.2 billion) in consumer trade-in subsidies by the end of June.
- This initiative targets the first contraction in retail sales observed since 2023.
- The overall stimulus program for domestic consumption has been scaled back.
- The 2026 program is now set at 250 billion yuan, down from 300 billion yuan in 2025.
- Subsidies will focus on specific items including cars, appliances, and smart glasses.
China is preparing to inject 62.5 billion yuan ($9.2 billion) into consumer trade-in subsidies by the end of June, as it grapples with the first contraction in retail sales since 2023.
This new funding arrives as a three-year campaign aimed at reviving domestic consumption shows signs of exhaustion. The program, originally slated for completion in 2026, has been reduced to 250 billion yuan from a previously planned 300 billion yuan for 2025. Furthermore, the scope of the subsidies is being narrowed, focusing specifically on items such as cars, appliances, and smart glasses, indicating a gradual phase-out of these incentives.