In recent years, consumer spending has emerged as the primary engine driving the economic growth of China, playing a crucial role in fostering high-quality economic development. The government has strategically allocated around 300 billion yuan for ultra-long-term special government bonds, which will additionally support large-scale equipment upgrades and promote trade-in programs for consumer goods. During the recently convened Central Economic Work Conference, a proposal to increase the issuance of these ultra-long-term special government bonds was put forth, ensuring continuous support for various “heavy” projects and policies focused on innovation and upgrading. This series of policy measures aims to comprehensively expand domestic demand, proactively addressing the challenges of insufficient domestic consumption.

There are numerous considerations behind the push for a renewed trade-in program for consumer goods. One of the primary facets is the observable real demand and potential for incremental consumer growth in China. With residents increasingly seeking higher-quality lifestyles, attention to the performance and safety of consumption products has heightened. Consumers are shifting their focus from merely having products to valuing their quality and usability, a shift that can significantly boost consumption. It has been 15 years since the last nationwide initiative advocating for the replacement of old consumer goods, and many items currently in use exceed their recommended lifespan, posing safety risks and failing to meet the growing need for quality and personalized products. Current estimates indicate that the yearly demand for the renewal of automobiles and household appliances alone exceeds one trillion yuan. By instigating a renewed national campaign for replacing old consumer goods, while simultaneously respecting consumer preferences, authorities can guide consumers towards discarding outdated products in favor of those that offer improved functionality and quality. This initiative not only resonates with the residents' aspirations for an enhanced quality of life but also stimulates their latent consumption potential, effectively expanding the consumer market and contributing to the impetus needed for high-quality economic growth.

On the flip side, this is a pragmatic step towards optimizing industrial structures and promoting industrial upgrades. Consumption fundamentally represents the ultimate demand and serves as the driving force behind production processes. Supporting the transition to new consumer goods through trade-in schemes will significantly aid in restructuring and upgrading industries. With the continuous elevation of technical standards for consumer products, including energy consumption and emission regulations, traditional production models are increasingly insufficient in meeting market demands. To facilitate the renewal of consumer products, companies will need to stimulate innovation in production technologies and utilize production factors more efficiently, laying a robust foundation for the transformation of related industries. For instance, the rising demand from residents for smart connected vehicles and intelligent home appliances is prompting enterprises to actively explore and integrate new technologies such as big data, artificial intelligence, and the Internet of Things, thereby enhancing their R&D capabilities. Additionally, leveraging feedback from consumers participating in trade-in programs will enable businesses to strategically optimize production processes and design based on consumer preferences, improving overall production efficiency and supply-demand compatibility.

In recent years, the concept of green consumption has gradually infiltrated various facets of daily life, including clothing, food, housing, transportation, and utilities. However, challenges still remain in the broader effort to transition towards greener production and consumption methods. Issues such as the inefficiency of old consumer goods recycling chains remain prevalent, and the standards, certifications, and labeling systems for green, low-carbon services require further development. To propel the next wave of large-scale trade-in programs for consumer goods, it is vital to address these bottlenecks and accelerate the formation of green, low-carbon production and consumption practices. For example, during the “trade-in” process, enhancing the recycling system for renewable resources may promote businesses' commitment to recycling old consumer goods, increase resource circulation efficiency, and minimize environmental pollution from waste. Moreover, in key sectors such as automobiles, home appliances, home decoration, and electric bicycles, an integrated approach that encompasses resources from industry associations, enterprises, and research institutions is necessary to improve relevant standards and advocate for the purchase and use of green products, ultimately enhancing the "green volume" of consumption.

The policy effects of the trade-in program have become increasingly evident over time. According to the Ministry of Commerce, as of December 19, 2024, nearly 2.7 million old cars have been scrapped and replaced, over 3.1 million vehicles have undergone updates, and more than 33.3 million consumers have availed themselves of related home appliance trade-in programs, leading to the purchase of over 52.1 million new units. To further amplify the policy’s impact, it is essential to better seize the opportunity for upgrading resident consumption. This entails a collaborative effort from the government guidance sector and market participants to encourage diverse stakeholders' active engagement. First, businesses must be empowered to enhance product research and design, fostering the iterative upgrade of product performance. Retailers should leverage both online and offline channels to establish designated trade-in zones while nurturing leading enterprises in the recycling resources sector. Secondly, implementing financial and tax support policies is crucial. Utilizing government funds to catalyze social capital investments can support enterprises in launching promotional activities, thereby driving product replacement and upgrades. Thirdly, the financial services industry should be encouraged to devise extensive and differentiated consumer credit and insurance products focusing on trade-ins, ensuring reasonable terms for down payments, interest rates, and repayment timelines, while enhancing the pricing and claims management of insurance products. Finally, fostering a conducive environment for consumer actions involves expediting the establishment of certification systems for key consumer product standards, encouraging mutual recognition of standards across sectors, and enhancing self-regulation within industries to safeguard consumer rights effectively.