It is a trillion-level market!

On March 13, the State Council publicly released the "Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in" (hereinafter referred to as the "Plan"), which clearly proposed to implement the "four major actions" of equipment renewal, consumer goods trade-in, recycling and recycling, and standard improvement.

On April 11, at the regular policy briefing of the State Council held by the State Council Information Office, Zhao Chenxin, deputy director of the National Development and Reform Commission, introduced that there is a huge market space for large-scale equipment renewal and trade-in of consumer goods. According to the estimation of relevant institutions, the mainland's annual demand for equipment investment and renewal in key areas such as industry and agriculture is more than 5 trillion yuan, and the demand for replacing automobiles and household appliances is also at the level of more than one trillion yuan.

Zhao Chenxin made it clear that in the next step, the central government will invest and the central financial funds will definitely have financial support for large-scale equipment renewal and consumer goods trade-in, and the support will be strong. At the same time, at present, local governments are also seriously studying and will take into account the actual situation of their respective financial resources and allocate a certain amount of funds to provide support.

Financial support is strong

"As I just said, this policy can not only promote consumption, stimulate investment, and effectively enhance economic vitality, but also increase advanced production capacity, promote energy conservation and carbon reduction, reduce potential safety hazards, and achieve high-quality development. Zhao Chenxin said.

From the perspective of investment, the "Plan" puts forward a clear growth target in terms of equipment renewal - by 2027, the scale of equipment investment in industry, agriculture, construction, transportation, education, cultural tourism, medical and other fields will increase by more than 25% compared with 2023.

With investment increasing by more than 25 percent in four years, where will the funds come from, and to what extent will governments at all levels provide financial support?

In this regard, Zhao Chenxin made it clear that the follow-up process of policy implementation will also see that the central investment, central financial funds, etc., must have financial support for large-scale equipment renewal and consumer goods trade-in, and the support will be strong. At the same time, at present, local governments are also seriously studying and will take into account the actual situation of their respective financial resources and allocate a certain amount of funds to provide support.

In terms of central financial support, Fu Jinling, director of the Department of Economic Construction of the Ministry of Finance, said that the Ministry of Finance will strengthen the guidance from four aspects: strengthening the overall planning of capital policies, improving tax support policies, improving government green procurement policies, and strengthening the linkage of fiscal and financial policies. Among them, in terms of fiscal and financial policy linkage, new funds will be arranged to support the implementation of a new round of loan discount policy, and the relevant re-lending policies of the People's Bank of China will be linked, and financial institutions will be guided to increase loans for equipment renewal and technological transformation of enterprises in key areas.

On April 7, the People's Bank of China announced the establishment of a re-loan for scientific and technological innovation and technological transformation, with a limit of 500 billion yuan and an interest rate of 1.75%, aiming to encourage and guide financial institutions to increase financial support for small and medium-sized technology-based enterprises, technological transformation and equipment renewal projects in key areas.

Regarding the consumption trade-in action, Fu Jinling pointed out that the central government will focus on supporting the promotion of car trade-in.

Consumers who scrap high-emission passenger cars or eligible new energy passenger vehicles and purchase new energy vehicles that meet energy-saving requirements or new energy vehicles will be given a fixed subsidy. Adhere to the linkage between the central government and local governments, and the subsidy funds will be shared by the central government and local governments in proportion to jointly promote the trade-in of old cars. At the same time, the central government will arrange funds to support the launch of the pilot work of charging and swapping facilities at the county level, make up for the shortcomings of charging infrastructure in rural areas, optimize the consumption environment of new energy vehicles, and stimulate the consumption potential of new energy vehicles in rural areas.

At the same time, the central government will support the construction of pilot cities for a modern commercial and trade circulation system through service industry development funds, support the improvement of green recycling systems such as household appliances, smooth the consumption cycle of household appliances, and help local governments to promote the trade-in of household appliances as a whole.

"In the next step, the Ministry of Finance will work with relevant departments to introduce support policies in a timely manner, and guide local governments to accelerate this work to ensure that the 'real money' policy of benefiting the people directly reaches consumers. Fu Jinling said.

The "1+N" policy system is on the way

Zhao Chenxin said that this round of promotion of large-scale equipment renewal and consumer goods trade-in, at the policy level will form a "1 + N" policy system, "1" refers to the "plan", "N" is the specific implementation plan in various fields.

Zhao Chenxin pointed out that at present, the State Administration for Market Regulation led the development of the standard improvement action plan has been introduced, the Ministry of Industry and Information Technology led the development of the industrial field equipment update documents have also been officially launched, the Ministry of Housing and Urban-Rural Development led the construction and municipal field equipment update implementation plan has also been issued and implemented, the Ministry of Commerce led the consumer goods trade-in documents have been printed, may be officially introduced in the next few days.

In terms of trade-in of consumer goods, the major categories of goods specified in the Plan include automobiles, home appliances, home decoration, kitchen and bathroom and other consumer goods. Xu Xingfeng, Director General of the Department of Market Operation and Consumption Promotion of the Ministry of Commerce, further clarified the subdivided support areas in the major categories, among which the automobile category mainly supports the purchase of energy-saving vehicles and new energy vehicles.

Regarding the definition of new and old products, Xu Xingfeng said that in terms of automobiles, it is encouraged to replace old cars with high energy consumption, high emissions, long service life and potential safety hazards for new energy vehicles or energy-saving vehicles. In terms of household appliances, some household appliances have high water consumption and high energy consumption, and at the same time, with a long service life, there are also problems such as aging accessories and potential safety hazards, so it is advocated to replace these with low energy consumption and low water consumption products. Home decoration kitchen and bathroom, encourage more use of green and low-carbon products.

"In short, on the basis of respecting the wishes of consumers, we encourage the use of smart, green and low-carbon consumer goods. Xu Xingfeng said.

Editor-in-charge: Zhu Yumeng

Proofreading: Wang Chaoquan

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