According to Xinhua, China’s widely watched “National Subsidy” (guo bu) program for replacing old consumer goods will undergo adjustments in 2026. At the national fiscal work meeting on December 27-28, Finance Minister Lan Fo’an announced that next year, the government will continue to boost consumption, deepen special initiatives to stimulate spending, and maintain funding for the “replace old with new” program, while optimizing the subsidy scope and standards.
Since its launch in 2024, the program’s coverage has been continuously expanding. In 2024, subsidies mainly covered scrapped vehicles and eight types of household appliances such as refrigerators. In 2025, coverage expanded to include microwaves, water purifiers, dishwashers, rice cookers, as well as digital products like smartphones, tablets, smartwatches, home renovation, and electric bikes. Subsidy standards for some products were also raised—for example, eligible scrapped vehicles purchasing new energy vehicles received a subsidy increased from 10,000 RMB to 20,000 RMB; for gasoline cars, subsidies rose from 7,000 RMB to 15,000 RMB.
Funding primarily comes from ultra-long-term special government bonds. In 2024, 150 billion RMB was issued; in 2025, the amount rose to 300 billion RMB. The Ministry of Finance confirmed that ultra-long-term special bonds will continue to support the program in 2026. Experts suggest further optimization, shifting from goods to service consumption, and incorporating cash subsidies, digital currency incentives, as well as support for childcare, employment, and other livelihood areas.
