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Fiscal strategies ignite domestic market surge

By Wang Keju | China Daily | Updated: 2026-02-27 08:58
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China has rolled out a potent one-two punch to stimulate consumer spending in order to strengthen the economy's footing in the critical opening months of this year, officials and analysts said.

At the start of this year, the first batch of fiscal funds totaling 62.5 billion yuan ($9.05 billion) has been disbursed to local commerce departments for this year's consumer goods trade-ins, Vice-Commerce Minister Sheng Qiuping told a news conference.

China's home appliance market is poised for a strong opening in early 2026, as this year's national subsidies have been implemented in an orderly manner, unlike the gap period at the beginning of last year, according to a forecast from All View Cloud, a market research firm.

Policymakers have front-loaded the funds to coincide with the peak Spring Festival consumption season, a move designed to unleash a wave of consumer spending as households prepare for the country's most important holiday, industry insiders said.

During the holiday period, local governments allocated a total of 2.05 billion yuan in direct consumer benefits through vouchers, subsidies and digital cash red packets.

"Since the new round of trade-in programs, air conditioners, along with digital gadgets such as mobile phones and computers, have continued to lead the shopping charts," said Ge Sen, secretary-general of Shanghai Commercial Trade Association of Household Electric and Electronic Appliances.

In particular, sales in brick-and-mortar outlets have increased by 15 percent to 30 percent month on month, Ge added.

Households are increasingly directing spending toward labor-saving appliances, high-capacity kitchen equipment, and AI-powered devices, said Yan Zhengkun, head of online retailer Suning.com's store management center.

"Products that enhance efficiency and create atmosphere have become sought-after this year," Yan said, citing automatic floor-washing machines with self-cleaning functionality, AI voice-controlled air conditioners, micro-steam-bake ovens, premium AI imaging smartphones, and 14-set-plus dishwashers as particularly popular categories.

AI functionality is rapidly transitioning from novelty to a mainstream standard feature, Yan said, adding that AI-enabled products now account for nearly 60 percent of relevant sales at Suning.com.

On top of the trade-ins, China has also rolled out a prize invoice pilot program across about 50 cities, where individual consumers obtaining valid invoices above a set threshold from qualifying purchases, including meals, hotel stays, travel, sporting events and other services, are eligible to enter a lottery with cash prizes generally capped at 800 yuan.

These 50 pilot cities, selected for China's innovative consumption programs, collectively account for 44 percent of the nation's GDP and total retail sales of consumer goods, according to Wu Gai, a senior official of the Ministry of Finance, underscoring the economic heft behind Beijing's targeted push to energize domestic spending.

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