"The Power of Trade-in Programs Boosting Holiday Shopping in China" This title effectively captures the main theme of the post, which is to highlight the impact of trade-in programs on holiday shopping in China during the Spring Festival season. The use of "Power" and "Boosting" emphasizes the significance of these programs in driving consumer sentiment and retail sales growth.

The Power of Trade-in Programs Boosting Holiday Shopping in China

China's consumer goods trade-in program has proven to be a powerful driver of holiday shopping during the Spring Festival season. The Ministry of Commerce (MOC) reported receiving subsidy applications for 10.79 million electronic devices over a four-day period starting January 20, following the expansion of the initiative to include mobile phones, tablets, and smartwatches.

The trade-in program has been highly popular since its launch in March last year, with automobile and home appliance trade-ins reaching 34,000 and 1.04 million units, respectively, as of January 23. The Spring Festival, or Chinese Lunar New Year, is a significant holiday in China, marking family reunions and an occasion for celebration.

The strong participation in the trade-in program has boosted consumer sentiment in the holiday market, with Vice Commerce Minister Sheng Qiuping stating that the program, along with shopping promotion events, will help meet growing demand for Spring Festival shopping. The government's efforts to support consumption have been instrumental in driving steady retail sales growth and boosting consumer confidence.

In 2024, China's trade-in program achieved impressive results, with over 6.8 million vehicles traded in and over 56 million home appliances sold under the program. The total sales value of eligible products topped 1.3 trillion yuan (approximately $180 billion), highlighting strong market vitality and immense potential.

Notably, purchases of smart and eco-friendly products surged, particularly new energy vehicles (NEVs) and energy-efficient appliances. The trade-in program has not only revitalized consumption momentum but also promoted a more sustainable economy and enhanced the quality of life for consumers.

In recent years, consumer spending has become an increasingly important economic driver in China. In 2024, final consumption expenditure accounted for 44.5 percent of economic growth, boosting gross domestic product by 2.2 percentage points. Consumption now plays a more pivotal role than investment or exports in shaping the economic landscape.

New consumer trends have emerged in China, including a resurgence in tourism and rapid growth in digital entertainment, online education, and livestreaming e-commerce. Green products, such as energy-efficient appliances and NEVs, have also gained popularity.

In 2025, supporting consumption will remain a top priority for the government. At the Central Economic Work Conference in December 2024, China's policymakers emphasized the need to vigorously boost consumption and expand domestic demand on all fronts. To achieve this goal, the government has expanded the trade-in program by including more eligible product categories and increasing funding.

Experts predict that with supportive measures in place, consumer spending will continue to grow steadily this year, while the Chinese economy demonstrates strong resilience underpinned by solid fundamentals and enormous potential.

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.