The National Development and Reform Commission and the Ministry of Finance said on the 25th that they will coordinate about 300 billion yuan in ultra-long-term special government bond funds to step up support for large-scale equipment renewal and trade-ins of consumer goods. The direct benefit this brings is that subsidies for renewal and replacement in some key areas will be significantly increased.

How strong is the support of this new policy? Which areas can enjoy real money discounts? Can those who have already received subsidies get a "price difference" top-up?

　　Subsidy standards significantly raised

Zhao Chenxin, deputy director of the National Development and Reform Commission, introduced at a press conference that the content of the "enhanced support" can be summarized as "three significant increases."

First, significantly expand the scope of support. In terms of equipment renewal, on the basis of the original seven areas of equipment renewal and recycling, the scope of ultra-long-term special government bond support will be expanded to equipment renewal in areas such as energy and power and old elevators, as well as energy conservation, carbon reduction and safety transformation in key industries.

In terms of trade-ins of consumer goods, replacement and renewal of personal passenger vehicles, trade-ins of home appliances and electric bicycles, and the purchase of items and materials for old house renovation, kitchen and bathroom renovation, and home aging-friendly renovation will all be included in the scope of ultra-long-term special government bond fund support.

Second, significantly optimize the organization method. In terms of equipment renewal, nearly 150 billion yuan will be allocated. Fully considering the characteristics of different fields and different types of projects, the threshold for fund applications will be lowered to effectively support equipment renewal and technological transformation that are small in individual scale but numerous and widely distributed.

In terms of trade-ins of consumer goods, about 150 billion yuan of ultra-long-term special government bond funds will be allocated directly to local governments to support them in independently implementing trade-ins of consumer goods. Unlike traditional support methods such as investment subsidies, this direct allocation of funds to local governments gives them greater autonomy. While meeting the overall requirements of the "two new" policies, it fully leverages local creativity and helps deliver real money discounts directly to consumers more quickly and conveniently.

Third, significantly raise subsidy standards. For example, for eligible vehicle scrappage and renewal, the subsidy standard will be raised from the previous 10,000 yuan for purchasing new energy passenger vehicles and 7,000 yuan for purchasing fuel passenger vehicles to 20,000 yuan and 15,000 yuan respectively, an increase of more than double. For individual consumers purchasing eight categories of home appliances, including refrigerators, washing machines, televisions and air conditioners, with energy efficiency or water efficiency standards of Level 2 or above, a subsidy of 15% of the product sales price will be given; for products with Level 1 or above energy efficiency or water efficiency standards, an additional 5% subsidy will be given.

　Vehicle scrappage subsidies apply retroactively

The measures introduced this time increase subsidies for vehicle scrappage and renewal. Can consumers who have already applied for vehicle scrappage and renewal subsidies receive a "price difference" top-up?

Xu Xingfeng, director of the Department of Consumer Promotion of the Ministry of Commerce, said in response to a question from a China News Service Guoshi Zhitongche reporter that the subsidies apply retroactively. For consumers who submitted eligible subsidy applications from the date the "Implementation Rules for Vehicle Trade-in Subsidies" was issued, that is, from April 24, the adjusted subsidy standards will apply; for consumers who have already received subsidies, the difference will be made up.

The time for subsidy distribution will also be shortened. Xu Xingfeng said that the functions of the vehicle trade-in information platform will be further improved, and the Ministry of Finance will be joined in optimizing the subsidy application review and fund allocation supervision process to shorten the fund distribution time and strive to let people receive subsidies as soon as possible.

He disclosed that as of noon on the 25th, the vehicle trade-in information platform had received 364,000 applications for vehicle scrappage and renewal subsidies. In the first half of the year, the national volume of scrapped vehicle recycling was 2.778 million vehicles, a year-on-year increase of 27.6%. Especially after the implementation of the vehicle scrappage and renewal subsidy policy, the volume of scrapped vehicles grew rapidly. In May, the national volume of scrapped vehicle recycling increased by 55.6% year on year, and in June it increased by 72.9% year on year, fully reflecting consumers' recognition of and support for the policy.

　　Trade-ins of electric bicycles included in work arrangements

In addition to stepping up support for trade-ins of vehicles and home appliances, the scope of this ultra-long-term special government bond fund support also includes old house renovation, partial renovation of kitchens and bathrooms, home aging-friendly renovation, promotion of smart home consumption and other home decoration and kitchen and bathroom "renewal" related content, as well as trade-ins of electric bicycles.

Beijing, Fujian, Guangdong, Hubei and many other places have already provided trade-in subsidies for home decoration and kitchen and bathroom products and smart homes. Xu Xingfeng said that officials will summarize the experience, practices and innovative measures of various places in carrying out home decoration and kitchen and bathroom "renewal" in the early stage, promote typical cases and excellent practices, and guide local governments to reasonably determine the implementation scope and subsidy standards in light of local realities.

He said that last year, the Ministry of Commerce took the lead in issuing several measures to promote home consumption, mainly focusing on three categories of products: green, smart and aging-friendly. In this home decoration and kitchen and bathroom "renewal," local governments can focus on the above three categories of products, creatively introduce specific measures, and actively promote green and energy-saving products such as showerheads, water purifiers and dishwashers with water efficiency Level 2 or above; smart upgrade products such as robot vacuums, smart toilets and smart door locks; and home aging-friendly products such as health monitoring and assistive devices.

Trade-ins of electric bicycles have also attracted much attention. Xu Xingfeng said that officials will include trade-ins of electric bicycles in the work arrangements for "2024 Consumer Promotion Year," organize qualified products from compliant electric bicycle manufacturers to participate in trade-in activities, and strengthen supply-demand matching.

At the same time, support benefiting the people will be increased. Local governments will be guided to make coordinated use of ultra-long-term special government bond funds to subsidize consumers who scrap old electric bicycles and purchase compliant new electric bicycles. Electric bicycle manufacturers and sellers will be encouraged to jointly carry out trade-ins and give consumers additional discounts.