Home Appliances Trade-in Policy Extended In China

According to reports in local media, the one-year-old home appliances trade-in policy, which was supposed to conclude at the end of May 2010, has been prolonged to the end of 2011 in Beijing, and the subsidy rates remain unchanged.

In June 2009, China launched a home appliances and electronics trade-in implementation solution and stated that from June 1, 2009, to May 31, 2010, people who have the registered residences in the pilot provinces and cities can gain a 10% subsidy when buying new home appliances products if they provide their old ones at the time of purchase.

The policy was formally launched in nine pilot provinces and cities, including Beijing and Shanghai, in August 2009 and has reportedly promoted sales within the Chinese home appliances sector.

A representative from the home appliances and electronics retailer Suning told local media that the company has received a notice from the Beijing Municipal Commission of Commerce for the continued implementation of this policy.

The home appliances trade-in policy is reportedly the sister policy of China's rural home appliances subsidy program and it helped many Chinese manufacturers cover deficits and increase surpluses. Due to the policy, Chinese companies such as Haier and Midea gained good performances in 2009. Statistics show 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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