250 billion special national bonds support old-for-new exchanges, "real money" boosts consumption

Source: 21st Century Business Herald 21 Finance APP Author: Zhang Xu

At 9 a.m. on March 5, the Fourth Session of the 14th National People’s Congress opened at the Great Hall of the People. Premier Li Qiang delivered the government work report on behalf of the State Council.

The 2026 government work report proposes to promote the expansion and upgrading of commodity consumption, allocate 250 billion yuan in ultra-long-term special bonds to support the replacement of old consumer goods, and optimize policy implementation mechanisms. A 100 billion yuan fiscal and financial coordination fund will be established to stimulate domestic demand, using methods such as loan interest subsidies, financing guarantees, and risk compensation to support demand expansion.

Consumption is the main engine driving economic growth. By 2025, China will deeply implement special actions to boost consumption, with the consumer market steadily expanding. The total retail sales of social consumer goods will exceed 50 trillion yuan for the first time, and the contribution of consumption to economic growth will reach 52%.

Since 2026, the policies for replacing old consumer goods have 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 helped the consumer market start strongly. Local governments have also introduced supporting measures, detailed implementation plans, and promoted the greater effectiveness of the old-for-new policy.

On February 14, Henan released the “Implementation Plan for Promoting Large-Scale Equipment Upgrades and Old-for-New Consumer Goods in Henan Province by 2026,” aiming to complete the scrapping and replacement of about 500,000 personal vehicles and about 5 million home appliances by the end of 2026. Starting February 9, Beijing implemented a new subsidy scheme for old-for-new vehicle replacements, with subsidies up to 20,000 yuan.

With policies like old-for-new support, Guangdong’s consumer market flourished during the Spring Festival, with continuous optimization of consumption structure and strong demand for services. Retail sales of household appliances like robotic vacuum cleaners increased by 137.9% year-on-year, retail sales of communication devices such as smartphones increased by 53.1%, and sales of new energy vehicles grew by 46.8%, showing a clear trend of consumer upgrading.

According to the Ministry of Commerce, as of February 23, the old-for-new consumer goods 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 2026 auto replacement subsidies reached 335,000, driving new car sales of 53.77 billion yuan.

On March 2, the 2026 National Consumption Promotion Month and the Beijing-Tianjin-Hebei Consumption Season launched in Tianjin. The Ministry of Commerce stated that the 2026 National Consumption Promotion Month and the Beijing-Tianjin-Hebei Consumption Season, as key activities under “Buy in China,” will further optimize the implementation of old-for-new policies, deepen new consumption formats, modes, and scenarios, expand supply of quality goods and services, and promote the integration of tourism, culture, health, green, and smart consumption, better meeting diverse and high-quality consumer needs.

The old-for-new policy is an important part of expanding domestic demand and boosting consumption. On March 4, Lou Qinjian, spokesperson for the Fourth Session of the 14th National People’s Congress, pointed out that this year, the focus will be on expanding domestic demand as a strategic priority, vigorously boosting consumption, and advancing the construction of a strong domestic market.

On one hand, it will expand the supply of high-quality consumer goods and services. Implement actions to improve service consumption and accelerate the cultivation of new growth points in service consumption; optimize old-for-new policies to expand and upgrade goods consumption; create an internationalized consumption environment, enrich consumption scenarios, and host series of “Buy in China” activities.

On the other hand, it will closely combine benefiting people’s livelihoods with promoting consumption. Promote high-quality employment, develop and implement income-increasing plans for urban and rural residents, and enhance residents’ consumption capacity. Steadily advance the equalization of basic public services, improve education, childcare, elderly care, and medical security systems, and reduce residents’ worries about consumption.

“This year, the Standing Committee of the National People’s Congress will supervise the construction of a unified domestic market, promote rural revitalization, and develop laws on social assistance, medical security, and childcare services, among others, to channel more resources into people’s livelihoods, enabling the public to consume, dare to consume, and be willing to consume.”

(Edited by: Wen Jing)

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