A staff member introduced consumers to a trade-in program for smart home appliances at a home appliance store located in Chongqing's Shapingba district on July 11, 2024. Photo: VCG

The implementation of China's plan to promote the large-scale renewal of equipment and trade-ins of consumer goods have effectively propelled the country's industrial development, and authorities have stepped up financial support for enterprises to advance technological progress and equipment upgrades, officials said on Monday. 

In August, the added value for core manufacturing sectors such as ships and related equipment increased by 23 percent year-on-year, Zhao Chenxin, a vice chairman of the National Development and Reform Commission (NDRC), told reporters. 

Thanks to the renewal program, many enterprises are optimistic about the prospects of sectors related to equipment and consumer goods, leading to brisk investment, Zhao said, adding that investment for equipment manufacturing in the first eight months grew by 10 percent compared with last year.

Zhao said that the ultra-long special treasury bonds worth 150 billion yuan ($21.27 billion) dedicated to large-scale equipment renewals have been issued in two batches, covering more than 4,600 qualified projects.

In addition to promoting industrial development, the plan is an important means to boost demand for enterprises, while the financial support will further motivate companies to upgrade their equipment, Li Changan, a professor at the Academy of China Open Economy Studies of the University of International Business and Economics, told the Global Times on Monday.

As for supporting enterprises' financing demand for equipment renewals, the People's Bank of China (PBC), the central bank, together with the NDRC and responsible departments, in April established a relending program for scientific and technological innovation and transformation, with an amount of 500 billion yuan and a yearly interest rate of 1.75 percent, said Peng Lifeng, director general of the Credit Market Department of the PBC. 

Peng noted that 100 billion yuan is dedicated to supporting the growth of small and medium-sized enterprises (SMEs) in science and technology with first-time loans. Another 400 billion yuan is allocated to support equipment renewal and technological transformation projects in key areas, with a focus on prioritizing projects undertaken by SMEs. 

Li highlighted the strong financial support for large-scale equipment upgrades while covering various aspects from the manufacturing sector to start-ups. 

China's drive to promote equipment upgrades covers a wide range of areas including industrial equipment, environmental infrastructure, operating vessels, new-energy buses and agricultural machinery. 

Global Times