This photo taken on Oct. 17, 2024 shows new energy vehicle model SU7 produced by Chinese tech firm Xiaomi displayed during the 2024 World Intelligent Connected Vehicles Conference in Beijing, capital of China. The 2024 World Intelligent Connected Vehicles Conference kicked off here Thursday, during which a series of activities will be staged to promote the coordinated development of intelligent connected vehicles and related fields. (Photo: Xinhua)

Guangdong Province has taken the lead in China by launching a comprehensive fiscal support package for large-scale equipment upgrading and consumer goods trade-ins, referred to as the “two renewals”, a report by local Nanfang Daily said on Wednesday.

The province has earmarked over 70 billion yuan ($9.6 billion) to drive the initiatives, the report said.

In Guangdong’s Foshan city, efforts to enhance industrial equipment upgrading have been gaining pace, Guangdong Television Station reported.

From January to October, the city facilitated technological transformation for 1,183 industrial enterprises, with more than 1.2 billion yuan being allocated to fund equipment upgrading and technological improvement, the report said.

The National Development and Reform Commission (NDRC), China's top economic planner, said recently that funds raised through the 1-trillion-yuan ultra-long special treasury bonds this year have all been allocated to support specific projects and programs across the nation.

Among the total, 700 billion yuan goes to implement major national initiatives and build up security capacity in key areas, while 300 billion yuan was channeled to fund equipment upgrading and consumer goods trade-in programs.

The 'two renewals' policies introduced in July have already produced notable results, driving a significant increase in retail sales, Yang Chang, chief analyst of Zhongtai Securities Co, told the Global Times on Wednesday.

According to the latest data from the Ministry of Commerce (MOFCOM), the trade-in program for big-ticket consumer goods has helped boost sales by more than 1 trillion yuan. 

As of December 13, the car trade-in program has led to the sale of over 5.2 million passenger vehicles, with more than 2.51 million being scrapped and over 2.72 million replaced. Additionally, the home appliance trade-in initiative has resulted in sales exceeding 49 million units across eight major product categories, MOFCOM data revealed.

Efforts are now focused on scaling up and broadening coverage. Multiple provinces and cities across China have already piloted initiatives, with potential for the program to extend from large durable goods to smaller items, Yang said.

In the recent agenda-setting Central Economic Work Conference, Chinese leaders noted that in 2025, “the country will increase the issuance of ultra-long special treasury bonds and continue to support projects for implementing major national strategies and building security capacity in key areas, as well as implementation of large-scale equipment upgrading and consumer goods trade-in programs,” Xinhua News Agency reported.

The meeting also called for enhancing the innovation capabilities and leading role of areas with economic development advantages, supporting major economically developed provinces to play major roles, and encouraging other regions to leverage their local conditions and advantages.

Guangdong has retained its status as the nation’s leading economic powerhouse for 35 consecutive years. 

The Guangdong provincial government has reiterated its commitment to maintaining its role as an economic powerhouse. The province aims to boost consumption, optimize investment, and stabilize export, while making better use of the ultra-long special treasury bonds to drive up local investment and stimulate consumption.