Shanghai Issued Action Plan for Equipment Renewal & Consumer Goods Trade-in

In order to implement the requirements of the State Council’s Action Plan for Promoting Large-scale Equipment Renewal and Trade-in of Consumer Goods (Guo Fa [2024] No. 7), the Shanghai Municipal People’s Government released the “Shanghai Action Plan for Promoting Large-scale Equipment Update and Consumer Goods Exchange for New (2024-2027)”(“Action Plan”) on April 30, 2024.

According to the Action Plan, actions in four aspects will be carried out in Shanghai: equipment update, consumer goods trade-in, recycling and utilization, and strengthening of policy support in 10 fields such as industrial, energy, construction, transportation, medical and so on of equipment renewal and four types of consumer goods (automobiles, home appliances, home decoration and electric bikes) trade-in, promoting the high-end, intelligent, green development and transformation of the industry, improving the safety and intelligence level of urban infrastructure, and promoting more high-quality durable consumer goods into the lives of residents.

The main content of this Action Plan includes:

• Promoting equipment upgrade: Encouraging enterprises to adopt new technologies and processes, focusing on green and low-carbon, safe production, digitalization, and intelligentization, to update and replace existing equipment, switch to new products that are more environmentally friendly, smart and efficient and improve production efficiency and product quality.

• Implementing trade-in of consumer goods: Introducing trade-in subsidy policies in the fields of automobiles, home appliances, home improvement consumer goods and electric bicycles to encourage consumers to recycle old consumer goods in exchange for new products and reduce resource waste, promoting the transformation of consumption structure to green, intelligent and high-end.

• Improving the recycling system: improving the recycling network of waste products and equipment, supporting the circulation and trading of second-hand goods, improving the recycling rate of resources, and maximizing the use of resources and reduce resource waste..

• Strengthening policy support: Providing financial subsidies, tax incentives and other policy support, certain financial subsidies or tax breaks to consumers and enterprises participating in the trade-in to reduce the cost of enterprises and consumers to update equipment and consumer goods. At the same time, formulating and improving relevant standards, strengthening market supervision, and ensuring product quality and transaction safety in the trade-in process.

Overall, the implementation of the Action Plan will help stimulate the vitality of the market, promote the optimization and upgrading of the economic structure, while improving the quality of life of residents, and achieve the sustainable development goals. At present, in order to refine and clarify the specific tasks and related supporting policies in various fields, the departments of economy & information technology, culture, tourism, commerce and finance have issued relevant support policies in the fields of industry, cultural tourism, and consumer goods. Special action plans in other areas are also being formulated by relevant departments, and we will continue to pay attention to them. Enterprises can focus on specific policies based on actual business situation and product type, and effectively participate in the Action Plan.