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SCIO briefing on promoting high-quality development: Ministry of Commerce

0 Comment(s)Print E-mail China.org.cn, September 10, 2024
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In March of this year, the MOFCOM and relevant departments jointly issued an action plan to promote consumer goods trade-ins. What results have been achieved? What further measures will be introduced in order to favor consumers with more tangible benefits? Thank you.

Li Yongjie:

Thank you for your questions. I'll invite Mr. Xu Xingfeng to answer them.

Xu Xingfeng:

First of all, thank you for your attention to consumer goods trade-ins. To promote this initiative is the decision and arrangement made by the Party Central Committee and the State Council with a focus on overall high-quality development. The MOFCOM and relevant departments have thoroughly implemented this initiative by introducing action plans and detailed rules for application of subsidies and have established an effective mechanism based on full respect for consumers' willingness, empowering them with convenience and motivation. In terms of vehicles, we have coordinated various parties and rolled out a combination of policies and measures focusing on the entire industrial chain encompassing the purchasing, driving, selling and scrapping of cars. In terms of home appliances, décor and kitchen and bathroom products, we have adopted measures to optimize recycling, making consumption more convenient, recycling more standardized and the circumstances more eco-friendly.

The journalist is interested in the results of our efforts, which can be demonstrated in two aspects. First is consumers' wide recognition. A recent survey conducted by relevant departments in over ten provinces and cities showed that more than 80% of consumers were aware of this policy and over 70% were willing to participate in it. The results are reflected in social recognition. Second is data. As the specific data just reported by Ms. Li Yongjie presents, by 9 a.m. today, we have received over 450,000 applications for vehicle scrapping and trade-in subsidies, showcasing robust growth. In the first half of this year, the recycling of scrapped vehicles increased by 27.6% year on year, and new energy passenger vehicles' retail sales have increased by 33.1%. In terms of home appliances, the retail sales of units above designated size increased by 3.1% year on year in the first half of the year, which was 2.1 percentage points higher than the same period last year. In terms of home décor and kitchen and bathroom products, the yearly growth of retail sales of furniture at units above designated size was 2.6%, indicating that the effects of the policy have been gradually emerging.

Recently, in accordance with the arrangements of the State Council, the National Development and Reform Commission and the Ministry of Finance have rolled out several measures to boost large-scale equipment renewals and consumer goods trade-ins. The efforts are ramped up with 150 billion yuan in ultra-long special treasury bonds to support different localities to make their own decisions and carry out consumer goods trade-ins. The subsidy standards are increased from 10,000 yuan for purchasing a new energy passenger vehicle and 7,000 yuan for purchasing a fuel passenger vehicle to 20,000 yuan and 15,000 yuan, respectively. 

In terms of home appliances, we offer subsidies for eight categories, including refrigerators, washing machines, televisions, air conditioners, computers, water heaters, household cookers and kitchen exhaust hoods. There are more detailed measures regarding home decoration and kitchen and bathroom products, providing support for old house renovation, kitchen and bathroom renovation, elder-friendly home modification and smart home solution consumption. We also support trade-ins of electronic bicycles, which is an addition. 

The journalist just asked about our plan to favor consumers with tangible benefits and further manifest the effects of the policy, which can be summarized into four keywords:

The first keyword is continuity. We have made adjustments with supportive policies by increasing the level of support and expanding the scope to cover more categories, and we should ensure continuity between previous and following policies. We will collaborate with relevant departments to promptly issue notices on further enhancing trade-ins of vehicles and home appliances, and introduce guidelines for upgrading home decoration and kitchen and bathroom products as well as implementation plans for trade-ins of electronic bicycles. The vehicle trade-in policy will also cover past cases. Those who previously received a subsidy of 10,000 yuan will be compensated an additional subsidy to match the new standard of 20,000 yuan, ensuring that early consumers do not suffer losses, which also reflects policy continuity.

The second keyword is guidance. We will encourage local governments to make their own decisions and improve their capabilities regarding trade-ins, guide them to improve supporting measures timely, and organize and implement the work effectively. We will further optimize subsidy review and fund allocations, speed up the review process, and improve service quality, to smooth the "last mile" of subsidy application and minimize the time for consumers from submitting applications to receiving subsidy funds. We will also implement measures such as facilitating sales of used cars, online cancellation of automobile registration and reverse invoicing of renewable resource recycling enterprises. These are supportive measures for promoting trade-ins, with the aim to ensure a smooth "venous circulation" in the trade-in process by continuously improving the renewable resource recycling system and making it more convenient for consumers to dispose of waste materials.

Third, publicity and promotion. To make this policy better known among the people, we hope journalists can pay more attention and be more supportive, using popular and easy to understand ways to step up this publicity and promotion at communities, enterprises, platforms, institutions and expos in order to increase the public's awareness. Moreover, we plan to step up publicity and promotion by providing trade-ins at various activities, including distinctive brand events of different regions and major expos for different industries, as well as organizing supply-demand matching activities. We will promote intelligently connected vehicles and smart home devices among other products highlighting quality and value for money to satisfy consumers' demand for trade-ins. 

Fourth, supervision and guidance. We will enhance follow-up efforts to evaluate the effectiveness of this policy by organizing comprehensive inspection for consumer product trade-ins, offering guidance for different localities and making better use of fiscal funds. The public has concerns over such trade-ins. They worry about false publicity, false price reduction and the selling of fake and low-quality products only to swindle subsidies. In view of this, we will smooth channels for filing complaints and lawfully crack down on these misconducts to create a favorable business environment. And we welcome media supervision. Let's work together to deliver good results. 

That's all I have to share. Thank you.

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