The "national subsidy" for trade-in policy will continue, and central government funds will be allocated in batches.

According to information from relevant departments, there have been no changes to the policy of expanding and intensifying the trade-in of consumer goods. The progress of subsidy fund utilization is in line with expectations, and central government funds will be disbursed in succession in Q3 and Q4.

It is understood that since the beginning of this year, in accordance with the deployments of the CPC Central Committee and the State Council, relevant departments such as the National Development and Reform Commission (NDRC), the Ministry of Finance, and the Ministry of Commerce have jointly implemented the program of large-scale equipment upgrades and consumer goods trade-ins with increased intensity and expanded scope. They have continued the good practices and experiences from 2024, directly allocating 300 billion yuan of national debt funds to local governments to intensify and expand the implementation of the trade-in policy for consumer goods, which will be carried out throughout the year. In January and April of this year, two batches of central government funds totaling 162 billion yuan have been disbursed to support local governments in implementing the trade-in policy for consumer goods in Q1 and Q2. An additional 138 billion yuan of central government funds will be disbursed in batches and in an orderly manner in Q3 and Q4.

"Currently, the utilization of subsidy funds for the nationwide trade-in of consumer goods accounts for approximately 50% of the annual scale, and the overall progress is in line with expectations," a relevant official from the NDRC introduced. The "national subsidy" funds consist of three parts: First, the ultra-long-term special national debt funds allocated by the central government, with the scale doubling compared to last year; second, in accordance with relevant regulations, local governments are required to provide matching funds in proportion to the central government funds, with a principle of 9:1 for central-local co-financing; third, some local governments will also arrange additional local funds beyond the central government funds and the proportionally matched funds, based on local work progress and implementation status.

In accordance with the established work arrangements, the NDRC and the Ministry of Finance will disburse central government funds in July and October to support the trade-in policy in Q3 and Q4, respectively. Local governments will also continue to provide matching fund support. Relevant departments will guide local governments to further optimize and improve the methods of subsidy distribution, ensuring smoother and more orderly policy implementation and balanced fund utilization by the end of the year.

According to a relevant official from the Ministry of Commerce, as of now, the sales volume driven by the trade-in of consumer goods this year has already surpassed that of the entire previous year. Overall, since the beginning of this year, the policy of expanding and intensifying the trade-in of consumer goods has continued to show positive effects, effectively driving the sustained expansion of consumption and significantly promoting industrial transformation and upgrading. Moving forward, local commerce authorities will be required to make good use of the allocated support funds, refine fund utilization plans by sector and time period, and steadily and orderly promote the trade-in of consumer goods. At the same time, they will work with relevant departments to strengthen supervision of product quality and prices, urge participating enterprises to operate in compliance with laws and regulations, strictly prevent fraudulent claims for subsidies, and ensure the standardized and orderly implementation of the policy.