Promoting a new round of large-scale equipment renewal and trade-in of consumer goods is a major decision and deployment made by the Party Central Committee with an eye to the overall situation of high-quality development. In March this year, the State Council issued the Action Plan for Promoting Large-Scale Equipment Renewal and Trade-In of Consumer Goods, and specific implementation plans for various fields have been issued one after another. How is progress going so far? Let's take a look —

Inter-Ministerial Joint Conference System →

Recently, with the approval of the Party Central Committee and the State Council, the inter-ministerial joint conference system for promoting large-scale equipment renewal and trade-in of consumer goods was officially established, led by the National Development and Reform Commission, with the Ministry of Housing and Urban-Rural Development, the State Administration for Market Regulation and others serving as deputy conveners of the inter-ministerial joint conference, and 21 departments and units participating. As of now, the policy system has been fully built, action plans for four aspects — equipment renewal in seven major fields, trade-in of consumer goods, recycling, and standards upgrading — have all been issued, and 31 provinces (autonomous regions and municipalities) have issued their own implementation plans for large-scale equipment renewal and trade-in of consumer goods.

Policy System →

As of now, the policy system has been fully built, action plans for four aspects — equipment renewal in seven major fields, trade-in of consumer goods, recycling, and standards upgrading — have all been issued, and 31 provinces (autonomous regions and municipalities) have issued their own implementation plans for large-scale equipment renewal and trade-in of consumer goods.

Standards →

In addition, standard-setting is being accelerated. All 129 national standards planned to be formulated and revised this year have been officially approved and initiated, and standards in fields such as energy conservation and carbon reduction, environmental protection, safety, and recycling are being further improved.

Funding →

Funding support is being gradually implemented

· The National Development and Reform Commission has arranged funds including central budget investment to support equipment renewal and key projects for energy conservation and carbon reduction and recycling;

· The Ministry of Finance has pre-allocated 6.44 billion yuan in central fiscal funds to support the trade-in of automobiles, and allocated 500 million yuan to support the scrapping of old agricultural machinery;

· The People's Bank of China, together with relevant departments, is implementing the relending policy for scientific and technological innovation and technological upgrading, and is carrying out project review and referral.

Phased Data →

Since the introduction of the policies on large-scale equipment renewal and trade-in of consumer goods, they have actually been reflected in various fields of production, investment, and consumption.

In terms of production

· In May, the large-scale equipment renewal policy drove the value added of the radio and television equipment manufacturing and communication equipment manufacturing industries to increase by 30.7% and 15.7% year on year, respectively.

· In terms of products, the output of special equipment for agricultural product processing increased by 53.6% year on year, CNC forging equipment by 17.2% year on year, and special equipment for the electronic industry by 11% year on year.

· In terms of investment, investment in equipment and tools continued to grow rapidly. From January to May, investment in the purchase of equipment and tools increased by 17.5% year on year, 0.3 percentage points faster than from January to April, driving total investment growth by 2.1 percentage points, and its share of total investment was 1.6 percentage points higher than in the same period last year. Under the effect of the large-scale equipment renewal policy, investment in the purchase of equipment and tools grew faster, with a large pulling effect, contributing 52.8% to the growth of total investment.

In terms of consumption

· Supporting policies for trade-in of consumer goods in various localities have been implemented one after another, and combined with the "6·18" online shopping promotion, they drove, to a certain extent, the sales of home appliances, communication equipment, and new energy vehicles in May.

· In May, retail sales of communication equipment and household appliances and audio-visual equipment by units above the designated size increased by 16.6% and 12.9% year on year, respectively, 3.3 and 8.4 percentage points faster than in April.

· Sales of new energy vehicles achieved relatively rapid growth. Data from the China Automobile Dealers Association show that in May, the transaction volume of new energy passenger vehicles increased by 38.4% year on year.

· From January to May, sales of home appliances under trade-in programs on major e-commerce platforms increased by more than 80%, and trade-in has become an important factor driving the growth of home appliance consumption.

· At the same time, various localities have also added a large number of intelligent community recycling facilities, and the recycling system has become more complete.