China sets up $8.9B fund to boost 2026 consumer goods trade-in

China has unveiled a $8.9 billion (62.5 billion yuan) fund to support and boost its consumer goods trade-in plan for 2026.

As reported by state news agency Xinhua, the report did not specify the total amount allocated to the fund for next year’s scheme.

According to a statement jointly issued by China’s finance ministry and state planner, the 2026 scheme will also include digital and smart products.

Smartphones, smartwatches, and tablets will be eligible for 15 percent discount, limiting to 500 yuan each.

Home appliances belonging to six major categories will be qualified for 15 percent subsidy, capped up to 1,500 yuan per item.

Buyers scrapping old cars will get subsidies equal to 12 percent of purchase price of new energy vehicles, capped at 20,000 yuan.

In the case of replacing the old vehicles with new NEVs, the buyers will receive 8 percent, up to 15,000 yuan.

The consumer goods trade-in scheme was launched by China in 2024, aiming to offer subsidies and support domestic demand in the midst of economic slump and trade pressure at domestic and international levels.