Canceling "national subsidies" in some areas? That does not exist.

During the "618" period, Wuxi Online Offline Communication Information Technology Co., Ltd. continued its promotional activities for several days, and consumers' enthusiasm for trading in old items for new ones remained strong. However, there were also discussions on social media about some regions temporarily unable to apply for the "national subsidy". In response to these hot topics, reporters conducted interviews in various locations. Since the end of May, discussions about the inability to receive the "national subsidy" in Chongqing, Jiangsu, Hubei, and other areas have attracted attention on social media. When the reporter checked the Chongqing consumer goods trade-in page on the Yunshanfu App, a notice mentioned that the subsidy funds for 27 subcategories of green smart home appliances and home improvement kitchen and bathroom "renovations" had been used up. Recently, when logging into the national subsidy section on Taobao, the reporter also saw a notice saying that the "Jiangsu national subsidy activity is being upgraded, and during the upgrade, you will not be able to receive it." The JD national subsidy section for Hubei province also had reminders of "Hubei smart home national subsidy activity being upgraded". Based on these statements, some netizens started to speculate whether the "national subsidy" in some areas would stop. Through interviews with relevant responsible departments and officials in various locations, reporters learned that there is no situation of canceling the "national subsidy". The reporter contacted the Market Operation and Consumer Promotion Division of the Jiangsu Provincial Department of Commerce and learned that the consumer goods trade-in policy in Jiangsu has not been suspended. Jiangsu's previous announcements clearly stipulated the regulations on the quota management and eligibility control of consumer goods trade-in funds, meaning that the "national subsidy" is subject to quota management. In late May, the Chongqing Municipal Commerce Commission replied in its "Public Mailbox" column on its official website, stating that the city is vigorously expanding the implementation of the consumer goods trade-in subsidy policy, and the enthusiasm of the citizens to participate is high. The first phase of subsidy funds is about to be used up. Currently, relevant departments are drafting the second phase of the trade-in subsidy policy. The Hubei Provincial Department of Commerce explicitly told reporters that the Hubei national subsidy activity will run throughout 2025, continuing until December 31. "Currently, national subsidy vouchers for home appliances and digital 3C products are limited to a daily quantity, first come first served," said Dong Wei, a staff member of the Circulation Department of the Hubei Provincial Department of Commerce. Industry experts stated that a few regions have temporarily improved the implementation pace of the "national subsidy" policy. In reality, the consumer goods trade-in work will continue throughout the year, with consumers having the opportunity to apply for the "national subsidy" every month and week. Recently, some companies, platforms, and self-media have taken advantage of this situation to hype up, create panic, consumers should be careful to distinguish. In fact, apart from the mentioned few regions, most provinces' national subsidy activities are progressing as usual. The consumer goods trade-in policy is an important policy deployed at the national level. Why is the usage of the "national subsidy" different in different regions after its implementation? The reporter found through research that while the national government sets the general framework for subsidies, each region has a certain degree of autonomy to determine the specific details of the implementation of national subsidies, such as how to apply for and use the subsidies. He Daixin, director and researcher of the Financial Research Office of the Financial and Economic Strategic Research Institute of the Chinese Academy of Social Sciences, believes that the faster implementation progress in some regions is related to the local consumption structure and the enthusiasm of consumers. "This also indicates strong market demand for the 'national subsidy', and the policy has stimulated consumption vitality." Since the beginning of this year, the consumer goods trade-in policy has been "strengthened" and "expanded", not only including new categories such as smartphones, tablets, dishwashers, etc., but also the scale of the ultra-long-term special national bond funds has doubled, from last year's 150 billion yuan to 300 billion yuan this year. This 300 billion yuan of ultra-long-term special national bond funds, along with the corresponding local matching and self-arranged funds, collectively constitute the source of the "national subsidy". The reporter learned that this 300 billion yuan is allocated to the regions in "chunks". When allocating, factors such as the permanent population size, regional GDP, the number of cars and home appliances, the 2024 consumer goods trade-in policy and fund implementation status are considered, with funds being preferentially allocated to regions where the work of the consumer goods trade-in in 2024 has been effective. The central government has arranged a total of 300 billion yuan in long-term special national bond funds to support the consumer goods trade-in, and this amount is fixed. In order to allow regions to use the central funds in a rational, orderly, and sustainable manner, the 300 billion yuan in central funds for this year will be released in batches. According to relevant ministries, a total of 162 billion yuan in central funds has been released in two batches in January and April this year to support regions in implementing the consumer goods trade-in work for the first and second quarters. An additional 138 billion yuan in central funds will be distributed in batches in the third and fourth quarters, while regions will also allocate and arrange sufficient local funds accordingly. The "national subsidy" will continue to benefit a large number of consumers. The implementation of the consumer goods trade-in policy has a long and multifaceted chain. In an interview released in early June at the "China Economic Roundtable", Ding Lin, Deputy Director of the Integrated Department of the National Development and Reform Commission, mentioned in a series of policy measures to promote domestic demand that the distribution of funds for consumer goods trade-in will be accelerated. Through research, the reporter found that many regions are actively optimizing and improving policy processes, focusing on reducing the pressure on businesses participating in advance to pay subsidy funds, innovating work measures, and enhancing the experience and sense of acquisition for consumers. Several experts and scholars have stated that since its implementation last year, the consumer goods trade-in policy has become an important driver of consumption and domestic demand. In Hubei, as of June 11, the total sales volume of 3C digital products, home appliances, kitchen and bathroom products, and electric bicycles traded in for new products in the province this year reached 33.5815 million units, cumulatively driving total sales of 41.483 billion yuan; in Liaoning, the number of consumers participating in the consumer goods trade-in activities has reached 2 million, directly boosting consumption by over 15 billion yuan... Judging from the implementation in various regions, the policy progress is positive and the effects continue to be evident. Data from the Ministry of Commerce shows that as of May 31, the five major categories of consumer goods traded in for new products have collectively driven sales of 1.1 trillion yuan, with approximately 175 million subsidy amounts distributed. "From the practices in various regions, the policy not only directly drives the significant increase in the sales of related consumer goods but also actively promotes the upgrading of the consumption structure and the transformation and upgrading of the related industrial chain," said Yao Dongmin, professor at the Central University of Finance and Economics and Deputy Director of the China Finance Development Collaborative Innovation Center, expressing that with the subsequent disbursement of funds and the continuous optimization of the relevant system, the consumer goods trade-in policy is expected to continue to play a positive role and benefit more people. This article is reprinted from "Xinhuanet Co., Ltd."GMTEight edition: Liu Jiayin.