China's Consumer Goods Trade-In Program Drives Sales Over 1.25 Trillion Yuan

China's initiative to encourage consumers to trade in old goods for new ones has generated over 1.25 trillion yuan in sales during the first half of this year, according to data released by the Ministry of Commerce. The program has also seen an improvement in its leverage ratio, with every yuan invested now stimulating 10.3 yuan in sales, up from 7.8 yuan previously. The initiative has benefited 169 million individuals.

Launched in March, the program is part of a broader effort to boost domestic consumption and upgrade the country's industrial base. It aims to incentivize consumers to replace older appliances and other goods with newer, more energy-efficient models, thereby supporting domestic manufacturers and promoting sustainable consumption patterns.

Overall retail sales in China grew by 2.7% year-on-year in the first half, with service retail sales increasing by 5.3%. Final household consumption contributed 2.1 percentage points to GDP growth, remaining the primary driver of the economy.

While sales of automobiles and petroleum products saw a slowdown, other categories, including smart glasses and high-efficiency home appliances, experienced double-digit growth. China's automotive exports also saw significant growth, with electric vehicle exports rising by 68.7%.