“SAVING MONEY IS THE MOST IMPORTANT THING”
But on the ground, consumer sentiment about the trade-in programme remains mixed.
While delighted with his new e-bike, Zhu sees the subsidy as a temporary opportunity rather than a lasting catalyst.
“I have felt tangible benefits and a sense of novelty,” Zhu said.
“This policy made me taste some sweetness, but I won’t change my spending habits,” Zhu added. “I’m still going to follow my parents’ ‘save as u can’ habit.”
Emma Fang, a 21-year-old student in Beijing, agrees that “saving money is the most important thing”.
While tempted by the programme’s generous subsidies, she instead opted to repair her existing iPhone 13 by replacing its broken screen, spending just 340 yuan instead of trading it in.
But she says the national subsidies still offer substantial value. “The lure is still quite enticing … (and) can certainly drive consumption.”
There are green perks too, especially among eco-conscious younger Gen Z consumers, Fang adds.
“Trading in old items allows idle equipment to be reused and repurposed … knowing that you are contributing to environmental protection.”
TEMPORARY BOOST OR SUSTAINABLE GROWTH?
Huang Tianlei, a research fellow at the Peterson Institute for International Economics, argues that China’s consumer trade-in programme merely provides a temporary boost.
“It’s just front-loading future consumption,” Huang told CNA. “It is simply buying policymakers more time until they can find more sustainable and structural ways to permanently raise private consumption.”
He also stressed the need for structural reforms to raise household incomes and lower precautionary savings, noting a key shift in mindset among policymakers during this year’s Two Sessions – “investing in people” rather than just infrastructure.
“(The Chinese government) now understands the importance of investing more in people in raising domestic demand, especially consumption and rebalancing the economy.”
“This mindset shift will probably take time to translate into more concrete measures,” he added.
