The National Development and Reform Commission and the Ministry of Finance have issued a notice about the implementation of a large-scale equipment renewal and trade-in policy for consumer goods in 2025.

Recently, the National Development and Reform Commission and the Ministry of Finance issued a notice on the policy of accelerating the expansion of large-scale equipment updates and the trade-in of consumer goods in 2025. The notice specifies that the funding for key areas of equipment updates supported by ultra-long-term special national bonds will be increased, expanding the support range to include fields such as electronic information, occupational safety, and facility agriculture, in addition to the existing support for industrial, energy-efficient equipment, energy and power, transportation, logistics, environmental infrastructure, education, culture and tourism, healthcare, and aging elevators. The focus will be on supporting the application of high-end, intelligent, and environmentally friendly equipment. Localities are encouraged to implement equipment updates on an overall scale through industrial parks and industrial clusters. The notice also mentions promoting the establishment of second-hand goods circulation pilot projects and encouraging the development of the "internet + second-hand goods" model. It supports platform companies and third-party organizations in providing quality inspection services for second-hand goods and information erasure inspection services. It also supports the export of second-hand vehicles that meet quality requirements. It encourages the implementation of remanufacturing of waste electrical and mechanical equipment that meets quality and safety and environmental performance standards, with remanufactured products meeting or exceeding the quality characteristics and safety and environmental performance of the original new products. The notice recommends replicating and promoting import pilot measures for key industries' remanufactured products in free trade pilot zones. The original Chinese text provides additional details on specific measures and areas of focus for equipment updates and the trade-in of consumer goods in 2025.Factors such as policy implementation and funding allocation are used to reasonably determine the scale of support funds for each region, with funding distribution slightly leaning towards regions where the results of the 2024 consumption of old-for-new goods exchange program are more effective. Regions should focus on key areas, prioritizing support for large durable goods exchange programs, exploring the linkage between subsidy policies and financial support, fully leveraging the leverage effect of policy funds, and promoting more high-quality durable goods to enter the lives of residents.(Eight) Expand the scope of support for scrapping and updating of automobiles. Based on the "Notice on Further Improving the Work of Old-for-New Replacement of Automobiles" (Commercial Consumer Letter [2024] No. 392), fuel passenger cars that meet the China IV emission standards are included in the range of old vehicles eligible for scrappage and update subsidies. Personal consumers can scrap petrol passenger cars registered before June 30, 2012 (including that day), diesel and other fuel passenger cars registered before June 30, 2014, or new energy passenger cars registered before December 31, 2018, and purchase new energy passenger cars or 2.0-liter and below displacement fuel passenger cars included in the "List of New Energy Vehicle Models Eligible for Vehicle Purchase Tax Exemption". For the purchase of new energy passenger cars, a single subsidy of 20,000 RMB is provided, and for the purchase of 2.0-liter and below displacement fuel passenger cars, a single subsidy of 15,000 RMB is provided. Personal consumers applying for subsidies according to this notice must scrap a motor vehicle registered under their name before the date of this notice. (Nine) Improve the subsidy standards for automobile replacement and update. Personal consumers who transfer ownership of a registered passenger car under their name and purchase a new passenger car will receive subsidies for the replacement and update of automobiles. The subsidy for purchasing a new energy passenger car is up to 15,000 RMB per unit, and for purchasing a fuel passenger car, it is up to 13,000 RMB per unit. Personal consumers applying for subsidies according to this notice must transfer the existing passenger car registered under their name no later than the date of this notice. The detailed rules for the implementation of automobile replacement and update subsidies will be formulated by each region in accordance with the requirements of this notice and in a reasonable manner. (Ten) Increase support for the old-for-new exchange of household electrical appliances. Continuously support the exchange of old household appliances for new ones, including refrigerators, washing machines, televisions, air conditioners, computers, water heaters, household stoves, range hoods, and add microwave ovens, water purifiers, dishwashers, and rice cookers to the subsidy range. Personal consumers purchasing products of the 12 above-mentioned categories that meet the level 2 energy efficiency or water efficiency standards will receive a subsidy of 15% of the product's sales price; for products meeting level 1 energy efficiency or water efficiency standards, a subsidy of 20% of the sales price will be provided. Each consumer can receive a subsidy for up to one item per category (up to three items for air conditioning products), with each item not exceeding 2,000 RMB. Personal consumers who have already received subsidies for the exchange of certain household appliances in 2024 can continue to enjoy subsidies for purchasing the same type of household appliances in 2025. (Eleven) Implement subsidies for purchasing new digital products such as mobile phones. Personal consumers purchasing mobile phones, tablets, smartwatches, and smart bracelets (with a single sale price not exceeding 6,000 RMB) will receive a 15% subsidy based on the product's sales price, with each consumer eligible for a subsidy for up to one item per category, not exceeding 500 RMB per item. (Twelve) Actively support the replacement of home improvement consumer goods. Increase the subsidy for personal consumers purchasing items and materials used in old house renovation, kitchen and bathroom renovations, and aging-in-place modifications, actively promoting smart home consumption, and more. The categories, standards, limits, and implementation methods of the subsidy will be reasonably determined by the relevant departments in each region in conjunction with actual conditions. (Thirteen) Accelerate the replacement of electric bicycles. All regions must further improve the implementation details of the subsidy, optimize the subsidy methods, simplify the operation procedures, strengthen market supervision, and accelerate the replacement of old electric bicycles with new ones. Personal consumers who trade in their old electric bicycles for scrapping and purchase new ones will receive a subsidy for the exchange. For those trading in old lithium-ion battery-powered electric bicycles for scrapping and purchasing new lead-acid battery-powered electric bicycles, the subsidy intensity may be appropriately increased. The subsidy standards for the replacement of electric bicycles will be reasonably formulated by the relevant departments in each region according to actual conditions. Three, accelerate the level of recycling and reuse (Fourteen) Strengthen the construction of recycling and reuse capacities. Continue to allocate special funds from ultra-long-term special national bonds to support high-level recycling and reuse projects. Support China Resource Recycling Group Co., Ltd. in accelerating the establishment of a nationwide and functional resource recycling and reuse platform to facilitate the resource recycling chain. Support the cooperative system of supply and marketing cooperatives to leverage the advantages of grassroots outlets, accelerate the improvement of standardized and regulated recycling networks, promote the integration of the household waste collection and transportation system with the resource recycling system. Strengthen major technological equipment research and development in the field of recycling and reuse and foster a group of backbone enterprises in the resource recycling sector. (Fifteen) Promote the upgrading of the second-hand goods trading and remanufacturing industry. Promote the construction of pilot projects for the circulation of second-hand goods, encourage the development of "Internet + second-hand" models. Support platform enterprises and third-party organizations in providing quality inspection services for second-hand goods and data erasure verification services. Support the export of second-hand cars that meet quality and other relevant requirements. Encourage the remanufacturing of waste mechanical and electrical equipment that meets the conditions, with remanufactured products' quality characteristics and environmental performance not inferior to the original new products. Replicate and promote key industry import pilot measures for remanufactured products in free trade zones. (Sixteen) Support the recycling and treatment of discarded electrical and electronic products. In 2025, the central government will continue to allocate special funds and use the "reward instead of subsidy" approach to support the recycling and treatment of discarded electrical and electronic products, promoting the healthy development of the industry. Soon, accompanying documents on the management of special funds for processing discarded electrical and electronic products will be issued to specify the enterprises' standards that fall within the scope of fund support and the necessary conditions, guiding enterprises towards environmentally friendly and standardized disassembly. (Seventeen) Promote the high-quality development of the recycling and reuse industry. Accelerate the implementation of "reverse invoicing" by recycling enterprises towards individuals who sell scrapped products, regulating the tax order in the recycling and reuse industry. Implement special actions for promoting the application of recycled materials, implementing the extended producer responsibility system, supporting production enterprises in the automotive, electrical, and electronic products industries to increase the application of recycled materials. Crack down severely on "workshop-style" recycling and disassembly activities, and lawfully punish illegal dismantling of scrapped motor vehicles, discarded electrical and electronic products, retired new energy equipment, and retired power batteries. Four, fully leverage the role of standards in driving improvement (Eighteen) Accelerate the formulation and revision of standards. In line with international advanced levels, enhance the mandatory technical, energy consumption, emission standards for key industries and important equipment, advance the upgrading of quality and safety standards for bulk durable consumer goods such as automobiles, household appliances, and home furnishings, accelerate the formulation of standards for smart home, digital products, and other sectors' energy efficiency.Standard for water efficiency. Strengthen the supply of standards in the field of resource recycling, and research and formulate standards for recycling and reusing key areas such as scrapped motor vehicles, discarded electrical and electronic products, retired new energy equipment, and retired power batteries. By the end of 2025, all 294 key national standards specified in the action plan for the improvement of standards in the "two new" areas will be completed on schedule.(19) Strengthen supervision of standard implementation. Focus on the implementation of important standards, improve the quality supervision sampling system, include household appliances, furniture and building decoration materials, electronic and information technology products, traffic tools and related products in the national key industrial product quality and safety supervision catalog. Research on the implementation of key national standards in the "two new" areas included in the central quality inspection and assessment. Continue to expand the implementation scope of energy efficiency and water efficiency labels, organize the selection of products and equipment as "leading runners" in energy efficiency and water efficiency. Strictly enforce mandatory standards for energy consumption, pollutant emissions, etc., to enhance the binding force of standards. V. Strengthen organizational implementation (20) Strengthen organizational leadership. The National Development and Reform Commission plays a leading role in the "two new" inter-ministerial joint meeting system, and together with the Ministry of Finance arranges long-term special national bonds funds for 2025 to strengthen the implementation of "two new" policies, strengthen overall coordination and tracking and dispatch. The Ministry of Commerce, the Ministry of Transport, the Ministry of Agriculture and Rural Affairs, and other departments should accelerate the refinement of subsidy standards in related areas according to their responsibilities, improve implementation rules, and organize local authorities to implement relevant policies well. The Ministry of Commerce integrates a national consumer subsidy data platform, facilitates data sharing and automatic comparison, simplifies the audit process, and enhances regulatory capabilities. Provincial-level people's governments should grasp the implementation of "two new" policies that strengthen organizational implementation, ensure the responsibilities of all parties, strengthen coordination and promotion, grasp the pace of work, give full play to enthusiasm, initiative, and creativity, and continue to amplify the effects of "two new" policies. (21) Strengthen financial support. The National Development and Reform Commission leads the arrangement of long-term special national bond funds to support equipment upgrades, used to implement the support policies listed in paragraphs (1), (2), (4), and (14) of this notice and projects that meet the conditions; directly allocate long-term special national bond funds to localities to support the replacement of consumer goods with old ones, used to implement support policies listed in paragraphs (8), (9), (10), (11), (12), (13), (5), and (6). Funds directly allocated to localities are generally implemented on a 9:1 basis between central and local governments, with the central government taking 85%, 90%, and 95% in eastern, central, and western regions, respectively. Provincial governments allocate matching funds according to the central fund distribution, and the funding allocation below the provincial level is determined by the provincial finance departments. Regions must strictly implement the support standards specified in this notice in the relevant areas, and determine specific support standards and categories for other areas according to local conditions to ensure that funds are used in line with the requirements of the "two new" policies. Regions must timely settle the 2024 subsidies for the replacement of consumer goods with old ones, and ensure a smooth transition between relevant support policies across years. If a region uses up the allocated amount for replacing consumer goods with old ones, the excess amount is supported by local funds, and the central government will no longer bear it. Any remaining amount of the central funds allocated for the replacement of consumer goods with old ones as of December 31, 2025 will be recovered by the central government. (22) Optimize participation thresholds. Regions should reasonably determine and timely update the list of main business entities participating in the replacement of consumer goods with old ones, and not restrict the participation of business entities based on sales volume, funding capacity, etc., and should support online and offline business entities equally, as well as business entities of different ownership, registration locations, and scales. Under the premise of risk control, regions should pre-allocate funds to corresponding payment platforms or business entities to increase fund settlement efficiency and reduce enterprise funding and operational pressure. (23) Simplify subsidy processes. Regions should distribute the qualifications for subsidies for the replacement of consumer goods with old ones through government platforms, mobile applications, and other platforms widely known and commonly used by the masses, reducing redundant information reporting from the source. Consumers' payment methods and types of payment vouchers should not be restricted, and business entities should not be required to purchase new payment equipment to participate in the activities. The subsidy audit process for consumer goods such as cars and household appliances should be optimized, interdepartmental data sharing should be strengthened, electronic certificates such as vehicle recycling certificates should be promoted, multi-departmental joint review and approval should be implemented to reduce unnecessary approval levels and processes. Regions should meet the time requirements from approval to payment to consumers under the premise of fund supervision, ensuring timely and efficient implementation of subsidies. (24) Regulate market order. Regions should require business entities participating in the replacement of consumer goods with old ones to publicly commit to product sales prices. For business entities found to not fulfill price commitments, engage in price violations such as raising prices before discounting, or misappropriating subsidy funds, their participation qualifications should be canceled immediately, and national subsidy funds should be recovered. Channels for consumer reports and complaints should be kept open, consumer product quality supervision sampling should be strengthened, and severe penalties should be imposed on acts of passing off fake as real, selling inferior goods as good, replacing old with new, using unqualified products as qualified, and forging or misusing energy efficiency and water efficiency labels. Illegal acts of cheating or misappropriating national subsidy funds should be handled seriously according to law, and those suspected of crimes should be transferred to judicial authorities for severe punishment. Regions should implement the requirements of accelerating the construction of a unified national market, breaking down regional protection, abolishing regional and channel restrictions, and promoting fair competition. (25) Strengthen project fund supervision. Relevant departments should, according to their division of responsibilities, strengthen the supervision and guidance of the full chain of implementation of local projects and the use of funds, coordinate online monitoring and offline field inspections, and resolutely prevent problems such as untimely fund distribution, delayed use, obstruction or misappropriation. Provincial people's governments are the primary responsible entities for project and fund management and should strictly manage long-term special national bond funds, conduct daily scheduling and on-site supervision of equipment upgrade projects, strictly enforce the central treasury payment system, ensure the bottom line of fund use, and avoid fictitious expenditure, false reporting, or substituting disbursement. Funds that do not meet the above requirements and violate financial discipline should be recovered promptly, and relevant personnel responsibilities should be seriously investigated according to law. (26) Strengthen tracking and evaluation. The National Development and Reform Commission, together with relevant departments, should strengthen the evaluation and supervision of the implementation of the "two new" policies in various regions and sectors, urge the implementation of key tasks, and coordinate to solve difficult and bottleneck issues. Relevant departments and provincial people's governments should conduct self-assessment and self-inspection of the progress of work, project implementation, fund use, achievement of performance goals, etc., and promptly report on the use of funds and the performance achieved.Report on the completion of performance targets to the National Development and Reform Commission and the Ministry of Finance. The National Development and Reform Commission will summarize with the Ministry of Finance to form a performance evaluation report, and the evaluation results will be used as an important basis for optimizing funding arrangements in the future.(27) Strengthen propaganda and guidance. Relevant departments in various regions should vigorously promote the progress and effectiveness of the "two new" policies, timely provide policy interpretations, and actively respond to social concerns. Various regions should carry out diverse forms of propaganda activities in communities, enterprises, and other grassroots sectors, detailing the connotations and specific operational methods of the "two new" policies. Strengthen cooperation among government, enterprises, and social organizations, promote typical models and advanced experiences, and vigorously create a good social atmosphere. This article is excerpted from the official website of the National Development and Reform Commission. Editor: Liu Xuan.