Increased Consumption Incentives Are Essential

There is a growing need for enhanced efforts to ensure that more households in both townships and counties can benefit from consumption-friendly subsidies provided through the consumer goods trade-in program. This initiative plays a crucial role in reinforcing the leadership of enterprises in technological innovation, as highlighted by Jia Shaoqian, the chairman of the Chinese home appliance manufacturer Hisense Group.

According to Jia, the consumer goods trade-in program has successfully stimulated the consumer market, led to improved consumption patterns, and significantly increased the adoption of green and energy-efficient products. This program has not only contributed to economic growth but has also improved the overall quality of life for many.

In the last quarter of the previous year, Jia reported that sales of Hisense’s home appliances grew by over 30% compared to the previous year, driven in part by this trade-in program. Consumers are increasingly drawn to high-quality, smart products that emphasize energy efficiency.

Jia emphasized the importance of allowing more small and medium-sized enterprises in rural areas to participate in the trade-in program, as this could further unlock the potential for consumption in lower-tier markets. He also stressed the need to support the sales of cutting-edge products that showcase innovative technologies.

The large-scale equipment upgrade and consumer goods trade-in initiative, launched last March, has already shown promising results in 2024. Data from the National Development and Reform Commission reveals that over 37 million consumers purchased more than 62 million home appliances last year, resulting in total sales exceeding 270 billion yuan (about $37.1 billion). Notably, products with the highest energy efficiency accounted for over 90% of the sales revenue.

In January, the country announced a series of measures aimed at expanding the consumer goods trade-in program as part of a broader strategy to enhance domestic demand and stimulate economic growth.

Jia further articulated that the key to nurturing new quality productive forces lies in reinforcing the role of enterprises in scientific and technological innovation, promoting a deeper integration of technology with industrial innovation.

The Central Economic Work Conference, which sets the tone for the country's economic direction, urged for more emphasis on driving development through technological innovation as a way to strengthen the modern industrial system.

To enhance China’s self-reliance in science and technology, Jia recommended focusing on original innovations and facilitating the industrial application of these advancements.

He also proposed that support be given to enterprises leading significant national projects and key R&D programs. Additionally, establishing a differentiated evaluation system for enterprise laboratories could further invigorate innovative capacities through institutional improvements.

Li Xianjun, an associate researcher at the Institute of Industrial Economics of the Chinese Academy of Social Sciences, noted that enhancing the development of new quality productive forces will make the economy more resilient. Such measures could improve the robustness of industrial and supply chains and strengthen the capacity to withstand external shocks.

Furthermore, Li underscored the need for breakthroughs in core technologies within key sectors like basic materials, software, precision components, integrated circuits, and high-end machinery to boost China’s independent innovation capabilities.

Pan Helin, an expert with the Ministry of Industry and Information Technology, emphasized the crucial role of providing greater support to micro, small, and medium-sized enterprises. Optimizing the business environment is essential since these enterprises play a vital role in driving technological advancements.

consumption, innovation, economy