The implementation of the consumer goods trade-in policy will further optimize

Ministry of Commerce announced on March 3 that the 2026 National Consumption Promotion Month and the Beijing-Tianjin-Hebei Consumption Season will kick off in Tianjin on March 2. The Ministry stated that the 2026 National Consumption Promotion Month and the Beijing-Tianjin-Hebei Consumption Season, as key events under the “Buy in China” theme, will further optimize policies for replacing old products with new ones, deepen new consumption formats, models, and scenarios, expand the supply of quality goods and services, promote the first-launch economy, healthy consumption, green consumption, and smart consumption, and foster integration across business, travel, culture, sports, and health sectors to better meet diverse and high-quality consumer demands.

Strengthening the Old-for-New Policy

Since the beginning of this year, the old-for-new policy for consumer goods has been fully implemented and precisely targeted, covering key areas such as automobiles, home appliances, digital and smart products. This has effectively activated market consumption potential and contributed to a strong start for the consumer market.

According to the Ministry of Commerce, as of February 23, the old-for-new policy benefited 31.127 million people and drove sales of 207.03 billion yuan. Demand for smart and green products remains strong. As of February 5, applications for automobile trade-in subsidies reached 335,000, boosting new car sales by 53.77 billion yuan.

To further release policy dividends, local governments have introduced supporting measures and detailed implementation plans to ensure the old-for-new policies take root and produce greater effects. On February 14, Henan issued the “Henan Province 2026 Large-Scale Equipment Update and Consumer Goods Old-for-New Implementation Plan,” aiming to complete the scrapping and replacement of about 500,000 personal vehicles and the replacement of about 5 million home appliances by the end of 2026. Starting February 9, Beijing implemented a new subsidy scheme for automobile trade-ins, with subsidies up to 20,000 yuan. On February 4, Hubei released the “2026 Hubei Province Automobile Old-for-New Subsidy Implementation Rules,” which stipulate that, following the principles of total subsidy control, monthly allocation, and balanced use, the Hubei Department of Commerce has developed a monthly plan for automobile trade-in subsidies across the province and guides cities and regions to specify weekly subsidy usage based on local support funds.

Guang Lixin, Deputy Director of the Circulation and Consumption Research Institute at the Ministry of Commerce Research Institute, stated that the new round of old-for-new policies maintains continuity while making dynamic adjustments. This is significant for ensuring the successful economic work in 2026, promoting consumption and investment, fostering healthy interaction between supply and demand, and enhancing the endogenous momentum and reliability of the domestic big cycle.

Expanding Supply of Quality Goods and Services

In addition to further optimizing the old-for-new policies, expanding the supply of quality goods and services is also a key part of the “Buy in China” series of activities, aimed at better meeting residents’ diverse and high-quality consumption needs.

Experts have provided specific suggestions on how to effectively expand high-quality supply based on current consumption trends. Dong Chao, Director of the Circulation and Consumption Research Institute at the China Academy of International Trade and Economic Cooperation, said that on one hand, opportunities should be seized to leverage the expansion of the “Two New” policies, optimize implementation processes, and stabilize and expand traditional consumption. On the other hand, the shift from primarily goods consumption to a balanced mix of goods and services should be supported by improving the “1+N” policy system for service consumption. Focus areas include cultural tourism, sports and health, elderly care and childcare, and catering and accommodation. Market access should be relaxed, industry integration encouraged, and leading enterprises with high service quality and strong brand reputation cultivated to increase high-quality service supply and stimulate service consumption potential.

Building on supply optimization, innovation in consumption scenarios and models is equally essential, serving as a key driver for boosting consumption and enhancing consumer experience.

Dong Chao suggested that efforts should be made to innovate consumption scenarios and models, vigorously support the first-launch economy by attracting well-known domestic and international brands to open flagship stores and hold debut events. Pilot programs for new consumption formats, models, and scenarios should be deepened, promoting multi-sector integration such as “Travel with Events” and “Follow Films for Food.” Additionally, digital empowerment should be utilized to develop instant retail, digital consumption, and national trend consumption, creating experiential and immersive new landmarks for consumption, driven by new scenarios and new supply.