China boosts consumer trade-in subsidies, expands scheme to digital products in 2026

China is taking new steps to boost household spending by expanding its consumer trade-in subsidy scheme, which was initiated in 2024. The program will be broadened in 2026 to include digital and smart products, with 62.5 billion yuan allocated from ultra-long special treasury bonds for initial funding this year. Consumers purchasing smartphones, tablets, and smartwatches will receive a 15% rebate, capped at 500 yuan per item. The program also targets major household and vehicle purchases, providing up to 15% subsidies for large appliances. Recent economic data shows signs of strain, emphasizing the urgency for China to cultivate new growth drivers as it looks to raise the consumption share of its GDP.