China expands trade-in program to stimulate consumer spending

China is expanding its trade-in scheme to boost consumer spending amid weak external demand. The program now includes more products, such as microwaves and smartphones, and offers subsidies of up to 20,000 yuan for electric vehicles. The government plans to double its investment in the trade-in program to 300 billion yuan this year. This initiative aims to sustain economic momentum and has already contributed to a rise in retail sales. Last year, the trade-in scheme increased consumption growth by over 1 percentage point. However, analysts warn that reliance on such programs may reduce future spending on non-subsidized goods.