As heatwaves intensify across China, household air conditioner use continues to grow. Rising residential cooling needs are adding increasing pressure to the power grid. This makes it a timely moment to revisit the government’s consumer goods trade-in programme – an initiative aimed at stimulating domestic consumption while advancing energy efficiency, which in turn supports broader energy and climate goals.
In 2025, the Chinese government highlighted “boosting domestic consumption” as its top policy priority, aiming to shift from a supply-side-led economic growth model to one that is increasingly demand-driven. To support this agenda, while mitigating the impact of subdued external demand amid global uncertainties, the government has introduced a range of incentives aimed at expanding household spending.
As an integral part of the “Two New” policy, the “consumer goods trade-in programme” offers subsidies to consumers who replace outdated devices with more efficient alternatives. Funding for the programme is set to double to 300 billion CNY ($41.7 billion USD) in 2025. This expansion aims to drive both overall spending and the adoption of the most efficient models.