China is betting on kitchen appliances to stimulate its economy

The Chinese government has expanded its trade-in program to include products like microwave ovens, dishwashers, rice cookers, and water purifiers, offering up to 20% off on new goods. This initiative, aimed at boosting the country’s slowing economy, already covered items such as TVs, phones, tablets, smartwatches, and electric vehicles.

Facing challenges like weak consumer demand and a deepening property crisis, China has allocated 81 billion yuan (£8.9bn; $11bn) for the trade-in scheme this year. Officials say the program, launched in March, has had “visible effects,” with sales of big-ticket items like home appliances and cars increasing.

However, some economists remain skeptical about its potential to significantly boost overall consumer demand. Dan Wang, an economist based in China, and Harry Murphy-Cruise from Moody’s Analytics both noted that while the program has supported specific sectors, it hasn’t led to a broader rise in spending.

In response to ongoing challenges, including growing difficulties for exporters and the looming threat of tariffs from President-elect Donald Trump, China has been implementing further measures to stimulate domestic consumption. China will announce its 2024 economic growth figures next week, with expectations of around 5%.