The State Council, or China's cabinet, announced on May 16 that the government will earmark 26.5 billion yuan ($4.22 billion) to subsidize the consumption of household electrical appliances for a one-year period.

The appliances include air conditioners, flat-panel television sets, refrigerators, washing machines and water heaters that meet energy-saving standards, according to a statement released on May 16 after an executive meeting of the State Council.

Meanwhile, the government will allocate another 2.2 billion yuan ($350 million) to promote the consumption of energy-saving light bulbs and LED (light-emitting diode) bulbs and 6 billion yuan ($954.55 million) for purchases of vehicles with engine sizes below 1.6 liters, the statement said.

Another 1.6 billion yuan ($254 million) will be earmarked to promote the consumption of highly efficient electrical machinery, according to the statement, which did not elaborate on how the subsidies will be implemented.