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China to promote trade-in programs, expand service consumption: minister

Xinhua | Updated: 2024-03-06 17:27
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Chinese Commerce Minister Wang Wentao speaks at a news conference on economy for the second session of the 14th National People's Congress in Beijing, March 6, 2024. [Photo by Feng Yongbin/chinadaily.com.cn]

BEIJING -- As part of its broad efforts to bolster domestic consumption, China has set its sights on encouraging the trade-in of consumer goods, including automobiles, household appliances and home furnishings, Minister of Commerce Wang Wentao said Wednesday.

China will also intensify its efforts to broaden service consumption, Wang told a press conference on the sidelines of the second session of the 14th National People's Congress, China's national legislature.

Wang said that China's automotive, household appliance and home furnishings markets are large in size, with a significant portion of products reaching a relatively old age, resulting in high energy consumption and emissions. Additionally, some of these products pose safety risks due to prolonged use.

"It is fair to say that a concentrated period of potential demand for replacements has emerged," he said.

According to Wang, promoting the trade-in of consumer goods, based on voluntary participation, serves as a powerful measure to enhance the current economic growth momentum and consolidate the trajectory of recovery, while also serving as a long-term strategy for promoting high-quality development.

Wang stated that efforts will be made to establish an efficient mechanism that encourages consumers to find it easier to replace old products and be more willing to purchase new ones.

Regarding service consumption, Wang highlighted the rapid development witnessed in recent years. From 2013 to 2023, the proportion of per capita consumption expenditure directed toward services increased by 5.5 percentage points, rising from 39.7 percent to 45.2 percent, he said.

"The potential for further growth in service consumption remains immense in the foreseeable future," he said.

Looking ahead, Wang outlined the Chinese government's plans to expand the service sector, through strengthening the coordination of policy measures, expanding opening up in the service sector, enriching the supply of services, and building relevant platforms and innovating service consumption scenarios.

This will involve broadening market access in service areas including telecommunications and healthcare, and taking full advantage of both domestic and international markets to increase the supply of services, according to the minister.

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