Workers make solar panel laminating machines at a factory in Qinhuangdao, North China's Hebei Province, on April 10, 2024. A manufacturing center for photovoltaic smart equipment went into operation in January, with an annual capacity of 800 solar panel laminators, which are used to produce solar battery modules. Photo: VCG

The National Development and Reform Commission (NDRC) gave details of a plan to promote the large-scale renewal of equipment and trade-ins of consumer goods on Thursday, with annual demand for equipment in key sectors estimated to exceed 5 trillion yuan ($691 billion), aiming at revitalizing the country's equipment and consumer goods sectors through extensive renewal strategies. 

"The large-scale renewal and trade-in market for equipment and consumer goods is exceptionally vast," said Zhao Chenxin, a vice chairman of the NDRC, during a conference, highlighting the need for automotive and household appliance replacement and equipment investment in critical sectors.

Zhao said that the annual demand for equipment investment in critical sectors such as agriculture and industry is estimated to surpass 5 trillion yuan, and automotive and household appliances replacement needs alone exceed 1 trillion yuan.

Issued by the State Council on March 13, the plan is designed to put high-quality durable consumer goods into the market, streamline resource recycling, and enhance the quality and efficiency of economic circulation. 
 
The plan, designed to foster consumption and investment, is expected to significantly boost economic vitality by replacing older industrial equipment with more advanced versions.

Experts said that the plan is set to attract investment and promote energy conservation, carbon reduction and digital transformation, thus advancing new productive forces and high-quality economic development.

Focusing primarily on fixed-asset investment and equipment upgrades, the move is expected to facilitate companies' technological and industrial transformation, Tian Yun, a Beijing-based economist, told the Global Times on Thursday. 

"It will aid businesses in upgrading their equipment and improving production efficiency," Tian added.

According to Zhao, the policy specifically targets updates and transformation across seven sectors - industry, agriculture, construction, transportation, education, cultural tourism and healthcare.

"By 2027, we aim to increase equipment investment in these sectors by more than 25 percent compared with 2023, and significantly enhance energy efficiency in key industrial equipment."

The plan also focuses on consumer goods replacements, particularly for household appliances and vehicles. 

The central government will support the vehicle trade-in initiative by providing fixed subsidies to consumers who scrap high-emission cars or purchase energy-efficient or new-energy vehicles, said Fu Jinling, director-general of the Department of Economic Construction of the Ministry of Finance, at the conference.

Local governments are also encouraged to coordinate the renewal of durable consumer goods such as home appliances. Fu added.

China is set to publish specific measures for the recycling and disposal of old consumer products.

"By 2027, we aim to double the recycling volume of scrapped cars from 2023 levels, increase secondhand car transactions by 45 percent and raise the recycling rates of used household appliances by about 30 percent," Zhao said.