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China on Wednesday issued a notice to expand the implementation of a large-scale industrial equipment upgrading and durable consumer goods trade-in program in 2025, a move that observers estimate will drive retail sale of more than 1 trillion yuan ($137 billion) and effectively boost domestic consumption, empowering the world's second-largest economy to achieve a steady growth this year. 

China plans to raise fiscal funds from selling ultra-long special treasury bonds to support durable consumer goods trade-ins and large-scale equipment upgrading in 2025, Zhao Chenxin, deputy head of the National Development and Reform Commission (NDRC), the top economic planner, said at a press briefing held by the State Council Information Office on Wednesday.

The specific amount is expected to be announced during this year's two sessions in March. Under the program, the country will broaden the range of goods eligible for government subsidies in 2025, officials said.

The Chinese central government has pre-allocated 81 billion yuan ($11.1 billion) in funds to continue the consumer goods trade-in program and ensure seamless implementation of the policy in more localities in 2025, Fu Jinling, an official from the Ministry of Finance, said at the press briefing.

In terms of the specific consumer goods trade-in policy in 2025, Zhao noted that the number of home appliance categories eligible for trade-in subsidies will be increased from eight to 12 types this year, with the additions of dishwashers, water purifiers, rice cookers and microwave ovens. 

Taking into account the actual needs of households, the maximum subsidy for air conditioners per consumer will rise from 1 unit to 3 units. In particular, subsidies for purchasing new mobile phones and other digital devices will be implemented to meet public expectations, Zhao said.

China will also step up support for large-scale equipment upgrading in key industrial sectors this year, according to the notice jointly issued by the NDRC and the Ministry of Finance.

Building on the existing loan support for industries including new energy, transportation, logistics, and environmental infrastructure, the supportive policy will be broadened to favor other sectors too, such as electronic information, workplace safety, agriculture and the use of high-end, intelligent and green equipment. 

Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Wednesday that he expected the effects of the fiscal stimulus on beefing up the country's domestic consumption to become "more evident" this year, amid growing uncertainties in the world. 

Chinese economists noted that the new fiscal stimulus could help drive up consumption of goods worth more than 1 trillion yuan in 2025, surpassing last year's level. 

"The stimulus could serve as medium- to long-term support policy by the officials to increase home consumption," Tian Yun, an economist based in Beijing, told the Global Times on Wednesday. 

Tian took note of the country's favorable conditions for boosting domestic consumption, including a middle-income group of about 400 million people, stabilized consumer expectations, as well as a jump in the share of residents' disposable incomes in the country's GDP.

It is believed that as supply-side structural reform is deepened and the fiscal policy support is being accelerated, China's retail market will rebound in 2025. Tian predicted that this year's retail sales could expand by around 5 percent from a year earlier.

As the Spring Festival long holidays approach, Chinese provinces and cities have recently moved to issue consumption vouchers to inspire public spending.

The number of pieces of industrial equipment being updated exceeded 20 million in 2024, the NDRC said. And, more than 36 million Chinese consumers purchased 56 million home appliances at a market value of 24 billion yuan, data released by the Ministry of Commerce showed.

And, more than 6.5 million outdated auto vehicles were scrapped and replaced nationwide in 2024. Meanwhile, the total sales of new-energy vehicles in China reached 11 million units last year.