China Expands Subsidies to Boost Smartphone and Electronics Purchases

The $41 billion initiative aims to stimulate domestic consumption and counter potential U.S. tariffs on Chinese exports.

China's government is extending its consumer subsidy program to include smartphones, tablets, smartwatches, and other electronics in 2025.
The initiative is part of a broader effort to invigorate domestic consumption and mitigate economic challenges, including potential new U.S. tariffs.
The subsidies are funded through ultra-long-term special treasury bonds and will prioritize regions with strong past trade-in program performance.
Major Chinese technology companies like Huawei and Xiaomi are expected to benefit, potentially increasing competition for international brands like Apple.
Officials have pledged to simplify the subsidy process for consumers and strengthen oversight to ensure effective use of funds.