[Macro Insight] The ＂trade-in＂ policy is frequent, and the consumer market is full of vitality.

　　Xinhua Finance Beijing, October 11th (analyst Wang Xinlei) Since the beginning of this year, "trade-in of consumer goods" has been an important means to promote consumption and expand domestic demand, and its popularity has remained high. The Ministry of Commerce, together with relevant departments, focused on four major categories, such as automobiles, household appliances, home improvement, kitchen and bathroom, and electric bicycles, issued a series of policy documents, deployed and guided local governments to independently carry out trade-in work, and achieved remarkable results. Since the implementation of the policy for some time, it has achieved certain results: the amount of subsidy applications has maintained a rapid growth trend, and the old-for-new policy has effectively boosted the dual growth of automobile consumption and scrapped automobile recycling; The consumer market of household appliances is gradually warming up, and the sales of household appliances are obviously improving, and the manufacturing and circulation enterprises have benefited a lot.

　　First, promote the trade-in of consumer goods, benefit enterprises and benefit the people, and achieve multiple goals.

　　The government work report in 2024 regards "expanding domestic demand and promoting a virtuous circle of economy" as one of the top ten tasks of government work in 2024, including stabilizing and expanding traditional consumption, and "encouraging and promoting trade-in of consumer goods" is one of the ways to promote stable consumption growth. The core reason why the trade-in of consumer goods can drive consumption is to reduce the purchase cost of consumers, stimulate their desire to buy and promote the sales of new products through the recycling of old goods and discounts. Vigorously promoting the trade-in of consumer goods is a major policy that benefits enterprises and benefits the people, and it is also an important measure to further implement the strategy of expanding domestic demand.

　　With the deepening of high-quality development, the demand for equipment renewal is expanding. Promoting large-scale equipment renewal and trade-in of consumer goods has three main functions: first, it can ensure the safety of production and living equipment. After all, a considerable number of products have a long service life, high energy consumption and hidden dangers in quality and safety; The second is to promote consumption while stimulating investment, promote the continuous increase of the proportion of advanced production capacity, increase advanced production capacity and improve production efficiency; The third is to promote energy conservation and carbon reduction, waste recycling, and circular economy leads industrial innovation and sustainable development.

　　Second, the policy is overweight to promote the trade-in of consumer goods, taking into account both economic and environmental benefits.

　　Since the beginning of this year, in accordance with the relevant decision-making arrangements of the CPC Central Committee and the State Council on strengthening support for trade-in of consumer goods, the Ministry of Commerce, together with relevant departments, has focused on four major categories, including automobiles, household appliances, home improvement kitchens and bathrooms, and electric bicycles, issued a series of policy documents, and deployed and guided all localities to independently carry out trade-in work.

　　In March 2024, the Ministry of Commerce and other 14 departments jointly issued the Action Plan for Promoting Trade-in of Consumer Goods, which stimulated the consumption potential and boosted the confidence of economic development by promoting the exchange of "energy" for automobiles, "intelligence" for home appliances and "rejuvenation" for home improvement and kitchen and bathroom. Focusing on the three major areas of automobiles, home appliances and home improvement kitchen and bathroom to boost consumption is because the market complex is large and the driving effect is strong. Trade-in of products in these three areas is used to boost consumption because a considerable number of products have long service life, high energy consumption emissions, hidden dangers in quality and safety, and great potential for trade-in and upgrading. It has been nearly 15 years since the last round of promoting the trade-in of consumer goods nationwide, and the demand for renewal has entered a concentrated release period. The promotion of trade-in in the three fields of automobiles, household appliances and home improvement kitchen and bathroom has its own characteristics: the trade-in action of automobiles is the trade-in of the whole chain of automobile consumer goods, covering all aspects of automobile life cycle such as new cars, used cars, scrapped cars and automobile aftermarket; The promotion of household appliances trade-in focuses on improving the recycling system of used household appliances and smoothing the consumption cycle of household appliances renewal; The promotion of "rejuvenation" of home improvement kitchen and bathroom is to expand the renovation of stock houses as the starting point, and to promote the replacement of home improvement kitchen and bathroom consumer goods.

　　In April, the Ministry of Commerce, the Ministry of Finance and other seven departments jointly issued the Detailed Rules for the Implementation of Vehicle Trade-in Subsidies, which made arrangements for the scope standard, subsidy declaration, review and issuance, subsidy fund management and supervision of vehicle trade-in subsidies. In terms of subsidy scope standards, two types of used cars specified for scrapping are purchased together.Passenger cars, subsidies of 10 thousand yuan; For scrapping fuel passenger cars with national emission standards of Grade III and below and buying fuel passenger cars with a displacement of 2.0 liters and below, the subsidy is 7,000 yuan. In the management of subsidy funds, the subsidy funds for automobile trade-in are shared by the central finance and local finance in the overall ratio of 6: 4, and the sharing ratio is determined by regions. The proportion of local finance in eastern provinces is higher than that in central and western provinces. The Ministry of Finance pre-allocates 70% subsidy funds to the provinces to support local governments to start related work. After the implementation period of the policy, the central and local governments will conduct liquidation according to the principle of "more refunds and less subsidies". In terms of supervision, local commercial authorities are responsible for supervising the audit of subsidy funds, and local financial departments are responsible for supervising the allocation of subsidy funds.

　　In July, the National Development and Reform Commission and the Ministry of Finance jointly issued "Several Measures on Strengthening Support for Large-scale Equipment Renewal and Trade-in of Consumer Goods" (hereinafter referred to as "Measures"), which clearly defined that efforts should be made to support trade-in of consumer goods. In terms of financial support, the ultra-long-term special national debt funds are arranged to support local governments to independently improve the trade-in ability of consumer goods. On the basis of "Detailed Rules for the Implementation of Vehicle Trade-in Subsidies", the subsidy standard for scrapping and updating automobiles will be raised to 20,000 yuan for purchasing passenger cars and 15,000 yuan for purchasing fuel passenger cars with a displacement of 2.0 liters or less, and "real money and silver" will promote automobile trade-in. The "Measures" clearly stipulates the subsidy for trade-in of household appliances: 8 types of household appliances such as refrigerators with energy efficiency or water efficiency standards of Grade 2 or above are given trade-in subsidies, and the subsidy standard is 15% of the product sales price; For products with energy efficiency or water efficiency standards of Grade 1 or above, an additional subsidy of 5% of the product sales price will be given.

　　Regarding the "Improving the recycling system of used household appliances and smoothing the consumption cycle of household appliances renewal" highlighted in the Action Plan for Promoting Trade-in of Consumer Goods, the Measures clearly stipulate that the recycling of used electrical and electronic products will continue to be supported by the way of "rewarding instead of supplementing". According to the Measures for the Administration of Special Funds for the Disposal of Waste Electrical and Electronic Products jointly issued by the Ministry of Finance and the Ministry of Ecology and Environment in September, special funds are allocated according to four weighted factors, namely, the standardized disposal capacity of waste electrical and electronic products in the previous year in relevant provinces, the investment in local solid waste pollution prevention and control, the actual number of household appliances owned by residents, and the actual operating load rate of waste electrical and electronic products. The continuous policy combines "boosting consumption by promoting the trade-in of household appliances" with "promoting the recycling of waste materials" to jointly improve economic and environmental benefits.

　　In addition to cars, home appliances, home improvement and kitchen and bathroom, electric bicycles "join" and "trade-in of consumer goods". In August, the Ministry of Commerce and other five departments jointly issued the "Implementation Plan for Promoting the Trade-in of Electric Bicycles", and returned the old electric bicycles under the personal name and exchanged them for new electric bicycles, as well as the old lithium-ion batteries.Consumers who buy electric bicycles in exchange for lead-acid storage electric bicycles will be subsidized, and consumers will be subsidized to return electric bicycles and storage with high security risks. The policy reduces the cost of consumers’ purchase through subsidies, boosts consumption and promotes the recycling of waste materials, while also working to eliminate potential safety hazards and improve the safety level of electric bicycles. One thing in common with the trade-in policy of household appliances and electric bicycles is to promote the sustainable development of the industry through green consumption.

　　Third, the trade-in policy has significantly boosted the growth of the automobile and household appliances consumption market.

　　Under the guidance of the trade-in policy formulated by the Ministry of Commerce in conjunction with relevant departments, various localities have launched trade-in actions for consumer goods. On September 25th, the National Development and Reform Commission held the third news conference of the "two new" policies series. When introducing the progress and typical practices of the trade-in of consumer goods, the relevant person in charge of the National Development and Reform Commission said that the 150 billion yuan extra-long special national debt funds supporting the trade-in of consumer goods had all reached the local level at the beginning of August, and the policy has achieved certain results since it was implemented for a period of time: the amount of subsidy applications has maintained a rapid growth trend, and the trade-in policy has effectively boosted the double growth of automobile consumption and scrapped automobile recycling; The consumer market of household appliances is gradually warming up, and the sales of household appliances are obviously improving, and the manufacturing and circulation enterprises have benefited a lot.

　　The old-for-new policy has boosted the obvious growth of automobile consumption. Geng Hongzhou, a first-class inspector of the Consumer Promotion Department of the Ministry of Commerce, said that as of 0: 00 on September 25th, the national automobile trade-in information platform had received more than 1.13 million applications for automobile scrapping and renewal subsidies, and the number of registered users of the platform exceeded 1.68 million, and the amount of subsidy applications maintained a rapid growth trend.

　　Since August, the sales volume of the national passenger car market has increased significantly, and the development of the automobile market has accelerated. According to the data of china automobile dealers association, the national retail sales of passenger cars in August was 1.905 million, an increase of 185,000 compared with 1.72 million in July, an increase of 10.8% from the previous month. The retail volume of new energy vehicles was 1.027 million, an increase of 149,000 compared with the retail volume of new energy vehicles of 878,000 in July, an increase of 17% from the previous month. The penetration rate of new energy vehicles reached 53.9% in August, 50.8% in July, and exceeded 50% for two consecutive months. After September, the data continues to grow. From September 1 to 22, the national retail sales of passenger cars increased by 10% compared with the same period in August; The retail sales of new energy passenger cars increased by 7% compared with the same period in August. During the National Day, the Ministry of Commerce received more than 1.27 million subsidy applications for the automobile trade-in platform, driving the sales of new cars to exceed 160 billion yuan. In the scrap recycling market, according to the data of the Ministry of Commerce, in May, June, July and August since the implementation of the scrap renewal subsidy policy, the national scrap car recycling volume increased by 55.6%, 72.9%, 93.7% and 73.8% respectively.

　　All localities have actively implemented the old-for-new policy of household appliances, the consumer market of household appliances has gradually warmed up, and the sales of household appliances have obviously improved. From the statistical data, driven by the trade-in policy of consumer goods, the retail sales of household appliances and audio-visual equipment decreased from 2.4% in July to 3.4% in August, among which the retail sales of energy-efficient household appliances achieved double-digit growth. From the tax data, since the release of the Action Plan to Promote Trade-in of Consumer Goods, the VAT invoice data of the State Administration of Taxation shows that from April to August, the retail sales revenue of household appliances such as refrigerators and televisions and other household audio-visual equipment increased by 2.4% and 5% respectively. Judging from the monitoring data of business operation, the home appliance market performed well during the "Eleventh" Golden Week. Ministry of commerceMonitoring shows that during the National Day, 8.238 million consumers bought a total of 11.78 million household appliances in eight categories, driving sales to exceed 55.7 billion yuan. Generally speaking, since the implementation of the trade-in policy this year, the traditional consumer market of household appliances has shown new vitality and vitality, and manufacturing enterprises and circulation enterprises have benefited a lot.