China injects $41bn to subsidize car, appliance purchases

Beijing looks to stimulate domestic spending amid overcapacity criticism

20240725N BYD

China will double subsidies for those trading in cars for electric vehicles and other new energy vehicles. (Photo by Shizuka Tanabe)

SHUNSUKE TABETA, Nikkei staff writer

BEIJING -- China will expand its stimulus program by roughly 300 billion yuan ($41.5 billion) to subsidize purchases of passenger vehicles and consumer electronics as it seeks to boost stagnant retail spending.

The National Development and Reform Commission and the Ministry of Finance made a joint announcement on Thursday. The funding will be covered by the 1 trillion yuan to be raised this year by issuing ultralong special treasury bonds.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.