China's cautious consumers are spending less, prompting Beijing to dish out incentives even for small home goods. The trade-in program aims to spur demand amidst economic challenges.
Li Gang, a commerce ministry official, highlighted that the trade-in program led to 920 billion yuan in auto sales and 240 billion yuan in home appliance sales last year.
The program, which subsidizes up to 20% of new appliance prices, was expanded to include smaller items like microwave ovens and water purifiers, enhancing overall consumer spending.
Despite the program's success, economists express worries about a potential deflation spiral, with flat consumer prices and a troubled economy stifling demand.
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