A worker sorts automotive glass at an electric vehicle factory of Jiangling Motors in Nanchang, East China's Jiangxi Province on March 18, 2025. Photo: Feng Fan/GT

At a factory in Nanchang, the capital of East China's Jiangxi Province, Automated Guided Vehicles (AGVs) glide methodically across the spotless floor, ferrying tools and parts to assemblers with precise timing. Overhead, vehicle frames advance along production lines, awaiting their final touches before shipping to domestic and international markets.

This seamless operation isn't science fiction, but a reality at Jiangling Motors (JMC), a major automobile maker in Nanchang city.

The smooth, efficient dance between human expertise and robotic precision assisted JMC to assemble over 70,000 vehicles last year. Now, armed with modern industrial robots and smarter software systems, the plant aims to boost production even further.

The increasingly automated workflows represent more than just a technological feat, largely thanks to local and national policy support, including large-scale equipment upgrading and consumer goods trade-in. Stimulating consumption through these effective measures has become a national priority and was the focus of a recent meeting in Nanchang, hosted by the Xi Jinping Thought on Economy Study Center under the National Development and Reform Commission (NDRC).

At the meeting, Wen Hua, a senior official of the NDRC, noted the significance of the policy, "In 2024, consumer goods trade-in initiatives stimulated 1.3 trillion yuan ($179.79 billion) in related sales, and large-scale equipment upgrade policies drove a 15.7 percent year-on-year increase in investment for purchasing equipment and tools."

The favorable policies enable effective demand to guide supply, while high-level supply system, in turn, generates further demand. As a result, they help ease supply-demand imbalances and eliminate blockages in China's economic cycle, enhancing both the momentum and reliability of the domestic market, Wen said.

This year's Government Work Report emphasizes large-scale equipment upgrades and consumer goods trade-in programs as the major drivers of market demand. It also announced the issuance of 300 billion yuan in ultra-long-term special treasury bonds to support the initiatives.

Domestic demand remains the main driver and stabilizing anchor of economic growth, largely determining the speed, quality, and sustainability of China's development. There remains significant room for further expansion in the near future, said Li Yuju, deputy head of the Study Center.

Propelling consumption

With the implementation of industrial equipment upgrading and consumer goods trade-in policies, a similar story is unfolding at a factory of Nanchang Haili Electrical Appliance CO, where workers can order AGV "delivery service" with a tap on the screen. "In less than 15 minutes, workers can get their tools or parts delivered with AGV carts," a manager of the company told the Global Times.

Haili has replaced 195 pieces of equipment, phased out 16 outdated models, and increased automation to 50 percent, dramatically boosting efficiency and reducing manual labor.

These upgrades are reshaping Jiangxi's industrial landscape. Companies like Jiangling and Haili are now digitizing assembly lines, modernizing their manufacturing tools, and implementing eco-friendly solutions, which will significantly raise productivity, and make manufacturing smarter, cleaner, and more sustainable.

Since the rollout of large-scale equipment upgrading and consumer goods trade-in programs in 2024, Jiangxi has experienced strong investment growth, expanded consumer spending, accelerated green transition, and enhanced public welfare. The measures ensure that policy benefits reach businesses and the public more swiftly and effectively, said Wang Qianhu, director of the Jiangxi Provincial Development and Reform Commission.

With the implementation of large-scale equipment upgrade and trade-ins of consumer goods, Jiangxi has propelled industrial, environmental, health, transport, and agricultural sectors to renew 150,000 units of equipment in 2024, said Jiangxi Provincial Development and Reform Commission.

The push for equipment upgrading has also stimulated consumer spending. In 2024, Jiangxi's trade-in programs helped replace 1.6 million home appliances and 140,000 auto vehicles, generating over 35 billion yuan in new sales, official data showed.

The programs have helped Jiangxi manufacturers boost sales while modernize their production methods. In 2024, the province's output of new-energy vehicles jumped by 90.8 percent year-on-year, while the production of air conditioners grew 26.9 percent and household refrigerators rose 13.1 percent.

The initiative has also facilitated the promotion of green technologies, as new models of appliances and cars often feature optimized energy consumption and lower emissions.

Nanchang Haili credits the policy with a sharp increase in air-conditioner compressor orders, both domestically and from overseas markets.

A manager told the Global Times that the company's sales rose by almost 20 percent in 2024. "Now, in every seven air-conditioner compressors worldwide, one is made by Haili," said the manager, noting how trade-in incentives have helped push the entire sector toward more efficient and innovative products.

These developments reflect a nationwide trend. According to data from the Ministry of Commerce, China's consumer trade-in campaigns in 2024 contributed more than 1.3 trillion yuan in sales, effectively raising the country's total retail growth by more than one percentage point.

Green transformation

Upgrading industrial equipment boosts productivity. At the JMC, replacing older machines with more efficient models has increased body-line automation from 75 to 94 percent, while new industrial heat pumps and a waste heat recovery system helps cut coal consumption by 454.64 tons every year.

Such advances support Jiangxi's reputation as a province rich in wetland and biodiversity. Official data indicates that wetland there accounts for about 25.3 percent of Jiangxi's land area, and Nanchang serves as a vital refuge for migratory birds. Approximately 95 percent of the world's Siberian white cranes and hundreds of thousands of other waterbirds fly in each year.

By revamping machinery to run more efficiently and emit fewer pollutants, local manufacturers help safeguard the animals' habitat.

The Jiangxi Provincial Development and Reform Commission estimates that completed equipment renewal projects could save about 67,600 tons of standard coal annually, cutting greenhouse gas emissions by up to 180,000 tons.

Jiangxi's experience is illustrative of a broader shift in China, where industrial transformation blends with environmental priorities. The policy framework encourages both production upgrading and energy-efficient consumer spending, forming a cycle that strengthens supply chains while lowering carbon emissions.