“Once the update is complete, our equipment will meet key standards within the domestic industry,” said Chen Gichun, deputy general manager of the company in Jiangsu Province, East China. “We expect this upgrade to increase efficiency by more than 5% and increase output per unit by about 20%.”
The company’s efforts are part of China’s large-scale equipment updates and consumer goods trade-in program launched in March 2024. The programme involves various government sectors that utilize ultra-long Special Treasury bonds to accelerate the implementation of related measures with the aim of stimulating investment and consumption.
Last month, China’s central bank, the People’s Bank of China, announced an increase in technological innovation and reliance on technological transformation from 500 billion yuan (approximately USD 69.6 billion) to 800 billion yuan. Furthermore, the dependency rate was reduced from 1.75% to 1.5%.
The increase is part of the central bank’s structural financial tools aimed at increasing domestic demand, according to Din Ziji, director of the central bank’s research institute. “This will provide unwavering support for equipment updates and implementing the consumer goods trade-in program,” Ding said in the latest episode of China Economic Roundtable, an all-media talk show hosted by Xinhua News Agency.
“It only took four months from the application to government assistance, which is very efficient for us,” said Chilwee Group Co., Ltd, in Zhijiang province, eastern China. said Xu Guoqiang, assistant manager of the power battery production subsidiary.
According to Xu, the company has invested a total of 60 million yuan in equipment updates, with 8 million yuan of the investment being funded by the government.
Similarly, many companies across the major industrial sectors across the nation are taking on equipment updates and enjoying benefits. In April, both value added in China’s major high-tech and digital products manufacturing sectors increased 10% year-on-year, National Statistics Bureau data showed.
Over a year since its launch, the national program has successfully achieved great potential in China’s domestic market. In the first four months of this year, equipment and equipment investments skyrocketed 18.2% compared to the previous year. According to the bureau, this increase accounted for 64.5% of overall investment growth over the period.
Din Lin, a national development and reform committee (NDRC) official, said at the Chinese economy roundtable that China has great potential to unlock to expand domestic demand as the world’s second largest economy with a population of over 1.4 billion.
To this end, the country needs to explore more approaches to increase people’s income and increase consumer capabilities, further optimizing its consumption promotion policy, Ding said.
In addition to updating equipment nationwide, Ding said China’s top economic planner, NDRC, will allocate 800 billion yuan of super-high-rise financial obligations to support the country’s key national strategy and strengthen security capabilities in key areas. Ding described the fund as a “active move” that stimulates effective investments.
“We will accelerate the construction and allocation of funds for the project to achieve concrete results as quickly as possible,” Ding added.
Reissued by Xinhua News Agency