ECONOMY

China Extends Consumer Stimulus to 2026, Cuts Back on Home Appliance Support

Published: Dec. 31, 2025 1:44 a.m. GMT+8

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A consumer shops for home appliances at a retail store in Nantong, Jiangsu province, on Nov. 20, 2025. Photo: VCG

China will continue its nationwide initiative to encourage equipment upgrades and trade-ins of consumer products through 2026, but with a tighter focus and reduced scope for household appliance subsidies, according to new policy guidelines released Tuesday.

The government has earmarked an initial batch of 62.5 billion yuan ($8.9 billion) from the issuance of ultra-long-term special treasury bonds for next year to support the initiative, the National Development and Reform Commission and the Ministry of Finance said in a joint notice.

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Explore the story in 30 seconds

China will continue equipment upgrade and consumer product trade-in subsidies through 2026, with a narrower scope and 62.5 billion yuan ($8.9 billion) in initial funding for 2025.
Household appliance subsidies are cut: eligible categories drop from 12 to 6, with tighter energy standards and reduced rebate rates.
Vehicle and digital electronics rebates continue with revised rates, while subsidies for e-bikes and home renovations are discontinued; oversight is tightened to prevent fraud.

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