China to subsidize citizens for durable goods to boost domestic consumption

China will subsidize domestic consumers who buy new smartphones this year, the latest attempt by the government to boost the country’s sluggish domestic consumption as uncertainty over overseas exports grows, the South China Morning Post reported.

China’s top economic planner announced on Friday that the country’s consumer swap program, funded by sovereign bonds, will be expanded to include personal digital products, including smartphones, tablets, smartwatches and bracelets, the country’s top economic planner said.

China will significantly expand the scope of special long-term treasury bonds to support the expansion of consumer goods swaps and the upgrade of industrial equipment in 2025, the deputy secretary-general of the National Development and Reform Commission said at a press conference.

The National Development and Reform Commission will improve the allocation of funds by favoring areas that performed better in the swap program last year, as well as streamline the subsidy process to ease liquidity pressures on companies, while strengthening oversight of the funds.