Li Chao, Deputy Director of the Policy Research Office at the National Development and Reform Commission (NDRC), announced at a June 26th press conference that the program is backed by RMB300 billion in ultra-long-term special treasury bonds. The first two rounds, totaling RMB162 billion, were disbursed in January and April.
Li stated that authorities will coordinate with relevant departments to allocate funds in phases, adhering to the principles of timeliness and balance. Detailed spending plans will be developed by sector and refined into weekly and monthly schedules to ensure smooth implementation throughout the year.
Of the total bond funding, RMB200 billion will be dedicated to equipment upgrades. The first tranche—about RMB173 billion—has already been allocated to 7,500 projects across 16 sectors, while a second batch is currently under review.
Data show the stimulus policy has significantly boosted sales of household appliances, furniture, and communication devices. Since the beginning of the year, sales of goods covered by the trade-in program have exceeded RMB1.4 trillion. Li emphasized that the policy has not only stabilized investment and consumption but also accelerated industrial transformation and improved people’s livelihoods.
To further support the initiative, the NDRC said it will introduce a new interest subsidy program for equipment renewal loans to help lower financing costs for businesses.
