China Trade-In Sales Top 1.25 Trillion Yuan in 2026
China’s consumer goods trade-in program has driven cumulative sales exceeding 1.25 trillion yuan (approximately US$172 billion) since the beginning of 2026, benefiting 169 million person-times, according to data released by the Ministry of Commerce and republished on the Chinese government website. The figures, broadcast via CCTV’s flagship “News Broadcast” program on July 25, highlight the program’s growing role in sustaining domestic consumption amid broader economic challenges.
Program Background
Launched in March 2024 under the State Council’s Action Plan for Promoting Large-Scale Equipment Renewal and Consumer Goods Trade-In (Guofa [2024] No. 7), the initiative encourages residents to exchange old appliances, vehicles, and other durable goods for new ones, with government subsidies lowering the cost. The program has expanded significantly year on year. In 2024, it covered automobiles and home appliances as a first-year pilot. In 2025, 300 billion yuan in ultra-long-term special treasury bonds were allocated — double the previous year’s amount — adding new categories such as mobile phones, tablets, smartwatches, microwave ovens, water purifiers, dishwashers, and rice cookers. Some provinces even expanded to include coffee machines and robot vacuums.
For 2026, the policy was confirmed to continue with optimized implementation under a joint notice from the National Development and Reform Commission (NDRC) and the Ministry of Finance, as detailed in the NDRC policy document issued in December 2025. The 2026 framework introduces streamlined subsidy disbursement, expanded coverage of smart and green products, and a clearer focus on reaching rural consumers.
Green and Smart Consumption Surge
The Ministry of Commerce reported that green products are increasingly favored by consumers. New energy vehicles (NEVs) accounted for 65.4% of all automobile trade-in subsidies in June 2026, a share that has been steadily rising throughout the year. This trend aligns with China’s broader carbon neutrality goals, which target peak carbon emissions by 2030 and carbon neutrality by 2060.
Smart consumption is also accelerating rapidly. Sales of digital and smart products grew 13.4% year-on-year in the first half of 2026, with June alone seeing a 32.0% surge. Smart glasses have emerged as a notable new consumption hotspot, reflecting the tech-savvy nature of China’s consumer base. The CCTV News Broadcast segment covering the data release highlighted these trends as evidence of the program’s dual impact on consumption and technological upgrading.
Local Innovation Expands Reach
A notable feature of the 2026 program is the growing role of local governments in tailoring subsidies to regional priorities. Nineteen regions across China have implemented independent category subsidy policies, selling 992,000 units of locally designated products. Cities such as Beijing, Shanghai, and the developed Jiangsu province have taken the lead in incorporating frontier technologies into their subsidy frameworks, including embodied intelligent robots and advanced smart-home devices.
This decentralization of economic policymaking reflects a broader trend: local governments are leveraging the trade-in framework to nurture emerging industries while addressing local consumer preferences. The inclusion of embodied AI robots — which combine artificial intelligence with physical mobility — is particularly significant, as it signals official backing for technologies that could become major export categories in the future.
The program’s reach is also expanding geographically. Offline participant entities grew 28.1% year-over-year, with particularly strong penetration in county-level and township markets. This suggests the subsidies are successfully activating demand in lower-tier cities and rural areas, where replacement cycles for durable goods tend to be longer and the potential for consumption upgrading is substantial.
A Ministry of Commerce official stated, “Since the beginning of this year, the consumer goods trade-in policy has cumulatively driven related product sales exceeding 1.25 trillion yuan, benefiting 169 million person-times, strongly supporting stable consumption growth.” The official also noted that the rising share of new energy vehicles receiving subsidies — reaching 65.4% in June — demonstrates the program’s effectiveness in steering consumer choice toward environmentally friendly options.
Economic Significance and Outlook
The trade-in program is a key instrument of China’s domestic demand-driven growth strategy, serving the dual purpose of stimulating consumption and promoting green and technological upgrading. As Xinhua News noted in its December 2025 analysis, the “two new” policy — encompassing both equipment renewal and consumer goods trade-ins — has become a vital tool for expanding domestic demand. Economists cited by Xinhua emphasized that the policy helps accelerate China’s shift toward an internally driven growth model, reducing reliance on exports and investment.
The program’s timing is significant. China’s economy has faced headwinds from a prolonged property sector downturn, slowing domestic demand, and structural challenges in the job market. Against this backdrop, the trade-in initiative offers a targeted mechanism to channel fiscal stimulus directly to consumers while simultaneously advancing policy goals around carbon reduction and technological modernization.
Green Transition Acceleration
The rising share of NEVs in trade-in subsidies — 65.4% in June — demonstrates how fiscal incentives can effectively reshape consumer behavior. This aligns closely with China’s climate commitments, including its goal of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060. The replacement of older, less efficient home appliances with energy-efficient models further reinforces the program’s environmental impact.
Rural Market Activation
The 28.1% year-over-year increase in offline participant entities, particularly in county and township markets, suggests the program is successfully penetrating beyond major urban centers. This is a critical development for China’s long-term consumption story, as rural and lower-tier city residents have historically been more cautious spenders. By making modern appliances and vehicles more affordable, the subsidies may help narrow the urban-rural consumption gap.
Outstanding Questions
Looking ahead, several questions will shape the program’s trajectory. The fiscal cost of the subsidies — funded through ultra-long-term special treasury bonds — raises questions about long-term sustainability. Analysts will also watch for potential “crowding out” effects, where consumers simply substitute subsidized purchases for ones they would have made anyway. Additionally, the program’s interaction with other economic challenges, including local government debt and the property sector downturn, warrants close monitoring.
Nevertheless, the July 2026 data provides strong evidence that China’s trade-in program is achieving its core objectives: boosting consumption, accelerating the green transition, and supporting the adoption of next-generation technologies. With the policy framework already in place for the remainder of 2026, the momentum is expected to continue, offering a bright spot in an otherwise complex economic landscape.
Reporting based on data from the Ministry of Commerce and CCTV News Broadcast, with additional context from the NDRC policy document and Xinhua News analysis.