Chinese Subsidy Program For Trade-Ins Expanded To More Provinces

China's Ministry of Commerce, Ministry of Finance, and Ministry of Environmental Protection have jointly published a "Home Appliances Trade-in Promotion Program", stating that from June 1, 2010, the policy will be launched in 19 additional provinces and cities, in addition to the existing nine pilot provinces and cities, and the implementation period of the policy will be extended to December 31, 2011.

The home appliances included in the policy are televisions, refrigerators, washing machines, air-conditioners, and computers. The nine pilot provinces and cities, including Beijing, Tianjin, Shanghai, Jiangsu, Zhejiang, Shandong, Guangdong, Fuzhou, and Changsha, continue to implement this policy, which was supposed to conclude at the end of May 2010.

The 19 new additional provinces and cities, including Hebei, Shanxi, Liaoning, Dalian, Jilin, Heilongjiang, Anhui, Fujian, Xiamen, Jiangxi, Henan, Hubei, Hunan, Chongqing, Sichuan, Guizhou, Shaanxi, Gansu, and Qinghai, and the policy starts from June 1, 2010.

The subsidies for the home appliances trade-in policy include a home appliances subsidy, freight subsidy, and disposal subsidy. The home appliances subsidy is generally 10% of the prices of the newly purchased ones; while the freight subsidy is decided by the types, specifications, and transport distances of the recycled ones. The subsidies will be 80% provided by the central government and 20% provided by the provincial governments.

Statistics shown in local media are that by May 23, 2010, sales of new home appliances related to the policy had reached over CNY50 billion, with over 13 million sold products; and the number for those recycled was close to 14 million.

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