China has launched a campaign of large-scale renewal of equipment and the trading-in of consumer goods – especially household appliances or white goods – to further stimulate consumer spending and inject new momentum into economic growth. Consumers who buy green and intelligent home appliances are eligible for subsidies. As of 2027, the recycling of used household appliances will increase by 30% compared with 2023, according to the plan. The latest policy measures aimed at boosting trade-ins of consumer goods will stimulate purchasing enthusiasm among consumers for home appliances, and promote the upgrading of the traditional white goods sector, said Zhou Yunjie, Chairman and CEO of Chinese home appliances maker Haier Group.
As Chinese consumers are exhibiting an increasing preference for intelligent and green home appliances amid the rapid development and application of artificial intelligence technology, domestic white goods manufacturers are accelerating the use of AI and chips to push the technological advancement of the whole industry, Zhou said. The Qingdao, Shandong province-based home appliances manufacturer is stepping up efforts to recycle old white goods, with about 2 million units of such products dismantled and 30,000 metric tons of materials recycled each year.
“Large-scale equipment renewals and consumer goods trade-ins represent a key direction for boosting circular economy development, and are of great significance to accelerate the formation of green production and lifestyles,” said Jia Shaoqian, Chairman of Chinese home appliance manufacturer Hisense Group. The company will establish online and offline recycling and disposal channels for discarded home appliances, as well as provide discounts and subsidies to consumers who are willing to replace old appliances with energy-saving and intelligent alternatives. Data from the Ministry of Commerce (MOFCOM) showed that as of the end of 2023, the number of household appliances, such as refrigerators, washing machines and air conditioners, had exceeded 3 billion units, which presents huge potential for renewal and replacement. Pei Dongmin, Deputy General Manager of the home appliance business unit at Beijing-based market consultancy All View Cloud (AVC), said “the new trade-in measures will not only unleash consumption demand for home appliances and bolster stable growth of the home appliances sector, but also give a boost to technological and product upgrades in emerging categories, and the green and smart transformation of industries.” According to AVC, sales in China’s white goods sector reached CNY849.8 billion in 2023, up 3.6% year-on-year.
Gree Electric Appliances, another home appliances manufacturer, based in Zhuhai, Guangdong province, has built six recycling bases for discarded home appliances and more than 30,000 offline sites. By the end of 2023, Gree had recycled, dismantled and otherwise handled 56 million units of discarded electronic products, recycled 850,000 tons of metals such as copper, iron and aluminum, and reduced carbon emissions by 2.8 million tons. In terms of automobiles, data from the Ministry of Commerce (MOFCOM) showed that there are approximately 16 million passenger vehicles that meet China III emission standards or below. Of those vehicles, more than 7 million have been on the roads for over 15 years. China has a six-tier vehicle emission standards system – one of the world’s strictest – with China VI being the highest tier.
The trade-in program is expected to effectively stimulate consumer spending in China. This year, total retail sales of consumer goods are expected to increase 6.5% year-on-year, the China Daily reports.
