SHANGHAI, March. 22 (SMM)- Consumption is the biggest driver of economic growth, followed by investment and exports. Li Weihua, a NPPCC member, proposed that rural home appliance subsidy program should remain in place so as to stimulate consumption and promote economic development.
During the four years (from December, 2008 to November, 2012) when subsidy program for purchases of home appliances in rural areas was implemented in Anhui province, home appliance sales in the province hit 23.21 million units, totaling RMB 61.47 billion. Besides, during the period (from June, 2010 to December, 2011) when the subsidy scheme to trade in old appliances for new ones in both rural and urban areas was launched, new home appliance traded in with old ones reached 3.53 million units, with sales value hitting RMB 12.57 billion. Recycled old home appliance amounted to 3.57 million units, which were worth RMB 36 million. These two policies cover over 10 million households, with subsidies averaging nearly RMB 700/mt for each household ad driving consumption by more than 10 percentage points on a yearly basis.