China’s Industrial Equipment and Consumer Trade-in Program: What We Know So Far

Key Takeaways

• The State Council recently launched its “trade-in old for new” (以旧换新) campaign intended to upgrade China’s manufacturing capability and incentivize consumers to make big-ticket purchases.
• While the central government-level message is positive, it remains to be seen how effective this campaign will be at the local level, where these programs will be implemented.
• The extent to which industry regulators and local policymakers will adopt the measures outlined in the plan will largely determine if MNCs participate in this campaign.