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ECONOMY
THIS WEEK> THIS WEEK NO. 20, 2012> ECONOMY
UPDATED: May 11, 2012 NO. 20 MAY 17, 2012
Subsidy Program Flop
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A nationwide subsidy program for rural consumers failed to spur home appliance sales in rural China amid the economic slowdown in the first four months of this year, according to data released by the Ministry of Commerce (MOFCOM).

Home appliance sales in China's countryside fell 6.7 percent year on year to reach 61.68 billion yuan ($9.8 billion) during the January-April period.

The volume of appliances sold during this period dropped 16.4 percent to hit 23.34 million units.

As of the end of April, China had subsidized 241 million units of home appliances valued at 567.49 billion yuan ($90.08 billion) over the past two-and-a-half years since the subsidy program began.

Initiated in 2009 to stimulate rural consumption and buoy the nation's economic growth amid the global economic downturn, the subsidy program will be effective until January 2013.

Under the program, farmers can receive subsidies equal to 13 percent of the price of the home appliances they buy.



 
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