Utilize the 'multiplier effect' of exchanging old for new
2024-10-21
Promoting trade in is a powerful tool for expanding domestic demand and promoting consumption. How effective is the promotion of large-scale equipment updates and trade in of consumer goods? Not long ago, relevant departments conducted research in more than 10 provinces and cities, and the results showed that more than 80% of consumers are aware of the trade in policy, and more than 70% of consumers are willing to actively participate in this policy. From the perspective of consumer participation, policies are playing a driving role in expanding domestic demand and promoting consumption. In recent times, large-scale equipment updates and the policy of exchanging old for new consumer goods have continued to be implemented. The Several Measures on Strengthening Support for Large scale Equipment Renewal and Consumer Goods Swap for New put forward that an extra long term special treasury bond of about 150 billion yuan will be allocated to support local governments to independently implement the trade in of consumer goods. The relevant departments have issued further implementation rules for exchanging old cars for new ones, exchanging old appliances for new ones, and promoting the exchange of old electric bicycles. Beijing, Shanghai, Guangdong, Jiangsu and other places have successively introduced relevant implementation plans. A set of policy "big gift packages" continues to heat up the trend of exchanging old for new consumer goods. Promoting trade in is a powerful lever for expanding domestic demand and promoting consumption. From the perspective of policy driven effects, the continuous expansion of the trade in policy has effectively boosted the sales of related consumer goods. In the first three quarters of this year, the retail sales of new energy passenger vehicles increased by 37.4% year-on-year, and the retail sales of household appliances and audio-visual equipment of units above designated size increased by 4.4% year-on-year. Thanks to the trade in policy, bulk consumption has maintained stable growth overall, laying a solid foundation for sustained consumption boost. This indicates that fiscal funds have leveraged more social investment and consumer spending. At present, the overall operation of China's economy is stable, but effective domestic demand is still insufficient, and the foundation for economic recovery and improvement still needs to be consolidated. Continuing to unleash consumption vitality and promoting a higher level of dynamic balance between supply and demand is necessary to inject endogenous momentum into stable economic growth. Data shows that by the end of 2023, the number of civilian cars in China will reach 336 million, and the number of household appliances in major categories such as refrigerators, washing machines, and air conditioners will exceed 3 billion. The upgrading of consumer goods represented by automobiles, home appliances, etc. can create a trillion yuan market space. The replacement of consumer goods can also drive industrial transformation and upgrading. Enterprises can also use large-scale equipment renewal policies to optimize production capacity, thereby achieving optimal structure and stable investment. Promoting the exchange of old for new and driving the dual wheel drive of consumption and investment is conducive to better leveraging the advantages of a super large market and tapping into greater domestic demand potential. To fully leverage the effectiveness of the trade in policy, it is necessary to keep up with new consumer demands, make great efforts to solve the difficulties and bottlenecks in the trade in process, use policies as incentives, and smooth circulation as drivers to establish an effective mechanism that makes it easier to remove the old and more willing to trade in the new. Starting from the demand side and fully respecting the wishes of consumers, measures should be taken to optimize recycling services, shorten the time for receiving subsidies, make consumption more convenient, recycling more standardized, and the environment more optimized, focusing on consumer scenarios such as changing cars, appliances, and homes, in order to stimulate people's greater enthusiasm for exchanging old for new. From the supply side, it is necessary to increase product innovation, launch more green, intelligent, and healthy new products, and make consumers willing to exchange, have the opportunity to exchange, and exchange well. Expanding domestic demand and promoting consumption are related to the operation of the economy and the improvement of people's livelihoods. Intensifying policy efforts to promote the exchange of old for new and the expansion of consumption quality can not only enable ordinary people to purchase better products at lower costs, but also better leverage the driving force of expanding effective demand and promote high-quality economic development. (New Society)
Edit：Luo yu Responsible editor：Wang er dong
Source：people.cn
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