Consumers will receive a 15-percent subsidy on digital products such as mobile phones, tablets and smart watches, according to a recent announcement from the National Development and Reform Commission and the Ministry of Finance. This is the first time digital products have been included in the country's consumer goods trade-in program.

Under the new policy, buyers can receive a maximum subsidy of 500 yuan ($68) for any single item in the three categories this year, provided its selling price is below 6,000 yuan ($818).

Many believe this subsidy will further boost digital product sales, particularly in the smartphone market, where demand remains strong. In the first 11 months of 2024, 280 million mobile phones were shipped in China. This represented a year-on-year increase of 12 percent, with 5G phones accounting for 86.2 percent of mobile phone shipments during the same period, according to the China Academy of Information and Communications Technology.

Data from the Ministry of Commerce showed that the trade-in program boosted sales of automobiles and home appliances by 920 billion yuan ($125 billion) and 240 billion yuan ($32 billion), respectively, in 2024.

Xiao Ruiping (Consumption Daily): Digital products have become essential consumer goods, particularly devices like smartphones, tablets and smart watches, which enhance people's work, study and entertainment experiences. Compared to home appliances, the upgrading of digital products occurs more frequently.

Digital products are also a major area for technological innovation. With advancements in 5G, artificial intelligence, foldable screens and smart health monitoring, public demand for new technologies is driving rapid upgrades in digital devices. The recently launched subsidy policy for digital products is expected to encourage consumers to trade up to newer models. In addition to price reductions, consumers will benefit from the latest technological breakthroughs and intelligent features.

The new subsidy policy is likely to motivate those who are hesitant for new purchases to make a quicker decision, allowing them to enjoy the advantages of upgraded features sooner rather than later.

This, in turn, will stimulate further innovation within the digital industry.

While the policy is designed to stimulate short-term consumer demand, it also has potential long-term effects including encouraging industrial upgrading and propelling society toward a more intelligent and greener growth model.

Zifang Xiansheng (Ce.cn): The inclusion of digital products such as mobile phones in the consumer goods trade-in program is expected to yield several benefits. Increased consumption of these digital devices, whether through expanded production capacity or higher order volumes, will inevitably lead to job growth in related sectors.

However, effective implementation of good policies is essential. It is important to accurately identify potential buyers to ensure that the subsidy policy genuinely benefits consumers who need to upgrade their digital products. The scandals of subsidy fraud and unexpected price hikes associated with last year's trade-in subsidies for household appliances should serve as a cautionary reminder. 

Additionally, an effective recycling system must be put in place. Every year, many millions of mobile phones are discarded, and this trend is likely to continue to grow this year, given the expected sales surge triggered by the subsidy policy. On the premise of ensuring personal data and information security, it is essential to find innovative ways to repurpose discarded mobile phones within the framework of resource recycling and a circular economy. This endeavor will require thoughtful collaboration and action from all stakeholders involved. BR

Copyedited by Elsbeth van Paridon

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