You are here: China > Government > SCIO Briefings >

SCIO briefing on China's economic performance in first 3 quarters of 2024

: 0 Comment(s)Print E-mail China.org.cn, December 3, 2024

Adjust font size:

CNBC:

I'm wondering, what is the impact of China's trade-in policy on retail sales? Thank you.

Sheng Laiyun:

Thank you for your question. I've already touched on some impacts of the trade-in policy, but let me address retail specifically, as it's indeed a crucial indicator of consumer market trends. Statistics show clear evidence of the policy's effectiveness. Total retail sales of consumer goods grew by 3.2% in September, up 1.1 percentage points from August, with 3.3% growth for the first three quarters. The trade-in policy has played a significant role, especially in September. As I mentioned earlier, following the central government's July announcement of major equipment upgrades and consumer trade-in initiatives, local implementation accelerated through August and September, with the policy effects becoming more pronounced in September. I'd like to highlight several figures for September. The retail sectors benefiting most from the trade-in policy are automobiles, home appliances, office supplies, and home furnishings. Our targeted research shows automobiles and home appliances experienced the broadest benefits, with around 60% of key retailers benefiting. The home furnishing sector saw a more limited impact, with benefits reaching less than 20% of businesses. However, looking at the enterprises that have already benefited, their retail growth rates have been comparatively high. Retail sales for benefiting enterprises in sectors like home appliances grew by over 30% in September. Additionally, auto sales by businesses above a certain scale (each with an annual revenue exceeding 5 million yuan) rose 0.4%, shifting from negative to positive growth. Household appliances and audio-visual equipment achieved their first high growth rate of over 20% this year, with smart home appliances growing by over 30%. Cultural and office supplies registered 10% sales growth, and furniture sales shifted from negative to positive growth. Based on these four categories that benefited most, retail sales by businesses above a certain scale are projected to increase by 1.2 percentage points. The policy's effects are clearly evident. We expect that the swift implementation of related policies will continue to yield positive results.

Thank you!