China expands trade-in program to boost consumer spending, economic growth: commerce ministry

China is ramping up efforts to expand its consumer goods trade-in program, aiming to drive consumer spending and stimulate economic activity, with a focus on streamlining services, mitigating risks, and strengthening recycling initiatives, officials said on Monday.

According to the Ministry of Commerce, the program generated over 1.3 trillion yuan (about 180 billion U.S. dollars) in revenues in 2024, reinforcing market confidence. The government is now expanding the policy's reach with increased funding and broader coverage.

At a press briefing, Li Gang, Director-General of the Ministry of Commerce's Department of Market Operation and Consumption Promotion, said the ministry has strengthened and expanded the program since the start of the year, doubling funding to 300 billion yuan (over 41 billion U.S. dollars).

The policy now includes new subsidies for digital products such as mobile phones, tablets, and smartwatches, an expanded scope for scrapped car replacements, a wider range of home appliances eligible for trade-ins, and additional subsidies for home renovation materials. Local governments are encouraged to introduce further incentives based on regional needs.

"As of March 16, the total number of applications for the nationwide vehicle trade-in program had surpassed 1.32 million, with consumers purchasing over 26 million units of home appliances across 12 categories. Additionally, more than 41 million consumers applied for subsidies on 51 million digital products, including mobile phones," Li said.

The automotive sector has seen especially strong uptake in trade-in applications, with both vehicle sales and the recycling of scrapped cars seeing significant growth, he said.

"According to data from the China Automobile Dealers Association, retail sales of domestic passenger cars rose by 1.2 percent year-on-year in January and February, with a notable 26 percent increase in February, indicating a strong upward momentum. Data from the Ministry of Commerce reveals that the nationwide recycling of scrapped vehicles surged by 50.1 percent year-on-year in January and February, with February alone seeing an extraordinary 188.2 percent increase, setting a new historical record," Li said.

Li outlined the government's plans to improve the trade-in system, focusing on four key areas.

First, he said, the system will be optimized with cross-regional data analysis to streamline applications and enhance efficiency. Local authorities will be guided to simplify procedures and expedite subsidy distribution to ensure faster and more effective access for consumers.

Secondly, to mitigate policy risks such as fraud, duplicate claims, and multiple sales of the same item, the government will upgrade the system with real-time monitoring and interception measures. Li emphasized the importance of maintaining open reporting channels and working with local authorities to address violations, safeguarding consumer rights and ensuring market order.

Thirdly, Li said, the government is prioritizing the "old-to-new" transition by promoting second-hand goods circulation and advancing the recycling system for renewable resources. This initiative aims to improve waste recovery and utilization, enhancing overall resource efficiency.

Finally, Li stressed the role of publicity in raising awareness of the trade-in programs. The government will create a joint publicity platform to communicate policy details and progress, while organizing local events, exhibitions, and promotional activities to stimulate consumer demand, he said.

China expands trade-in program to boost consumer spending, economic growth: commerce ministry

The recent budget cut to the U.S. Agency for Global Media (USAGM), which funds the Voice of America (VOA), has shed light on its role as a political tool for ideological warfare, as experts noted people's dawning recognition of such propaganda machines aimed at undermining political and social orders of other countries.

Trump's executive order, issued last Friday, designated USAGM as part of "unnecessary" federal bureaucracy. The agency, which oversees VOA, employs around 3,500 staff members and had a budget of 886 million U.S. dollars for 2024, according to its latest report to Congress.

Founded in 1942, VOA has long served as a propaganda tool for the U.S. government, advancing ideological objectives. Funding for VOA and similar institutions has continued uninterrupted for over 80 years, regardless of which political party holds power.

Experts argue that VOA is not a genuine media organization. Many of its programs are not broadcast within the United States, but instead target specific countries abroad, functioning primarily as a propaganda outlet designed to influence foreign audiences.

"While it may appear to be a so-called media organization, in reality, its actions have never constituted true journalism. Therefore, terms like openness, transparency, or credibility cannot be used to assess VOA. From its inception, it has been a political tool for the United States to implement its foreign strategies and policies, essentially functioning as a strategic instrument," said Diao Daming, deputy director of the Center for American Studies at Renmin University.

Alongside VOA, "Radio Free Asia" and "Radio Free Europe" also serve U.S. ideological needs, often targeting and attacking other countries. Many nations have recognized the damage caused by these outlets, regarding them as "unwelcome organizations".

"These so-called institutions have been recognized for causing significant disruptions to political, social, and even economic orders in other countries, often leading to events like 'color revolutions' and similar upheavals. As a result, most countries have adopted a clear stance of resistance, fully understanding the true nature of these so-called 'media' as tools of hegemonic influence," Diao added.

Coincidentally, last week, the Canberra-based Australian Strategic Policy Institute (ASPI), a think tank critical of China, announced halting its China-related research projects after the U.S. government froze its foreign funding.

Whether forced to shut down or exposed for their practices, these events highlight the vulnerability of these propaganda networks. Without funding, their operations struggle to continue. However, experts suggest that the United States is unlikely to halt its ideological campaigns and may rebrand these entities in new forms.

"I believe these institutions and individuals will likely use this opportunity to transform, employing more covert and subtle methods to carry out propaganda abroad, rather than simply halting or cutting off funding," said Yang Yujun, dean of the Academy of Media and Public Affairs at Communication University of China.

US budget cuts unveil Voice of America's role in ideological warfare: experts