Equipment Renewals Kick Off
Recently, the State Council released an action plan to promote large-scale equipment renewals and trade-ins of consumer goods, which sets the stage for nurturing new productive forces. With the advancement of equipment updates and the widespread application of new equipment, not only will it optimise investment structures and counter the challenges of declining real estate investment and diminishing marginal effects of capital investment, but it will also promote productivity and environmental performance, enhancing China’s industrial total factor productivity.
China is a major holder of machinery and durable consumer goods, and there is enormous market space for large-scale equipment renewals and trade-in programs for consumer goods. The annual demand for equipment investment and renewals in key sectors such as industry and agriculture exceeds 5 trillion yuan, while the demand for vehicle and home appliance upgrades exceeds 1 trillion yuan, with the output value of recycling industries for waste equipment and consumer goods expected to surpass 4 trillion yuan.
