Daijiworld Media Network- Beijing
Beijing, May 25: In a massive economic push to stimulate domestic consumption, the Chinese government’s aggressive subsidy scheme for digital products has reaped rich dividends, with sales surpassing a staggering USD 20 billion in just four months, official sources confirmed on Friday.
According to China's Ministry of Commerce, the government-backed programme led to the sale of over 51 million digital products, including smartphones, tablets, and smartwatches, between January and April 2025, with more than 48 million consumers availing the benefits of the scheme. The total sales value touched approximately 143.3 billion yuan, equivalent to USD 19.9 billion.
Officials observed that retail sales of communication appliances witnessed a sharp 25.4% increase year-on-year, marking the fastest growth among 16 key consumer categories tracked by the ministry.
Launched as part of broader economic revival efforts, the subsidy initiative offers up to 500 yuan (USD 71) per digital device priced under 6,000 yuan (USD 850), covering 15% of the product price. The scheme applies to both domestic and international brands, ensuring a level playing field in the booming Chinese electronics market.
In addition to boosting sales, the scheme has reportedly led to a consumer shift towards mid-range and premium devices. According to third-party data, smartphone sales in the 2,000–4,000 yuan range rose by 13%, while devices in the 4,000–6,000 yuan bracket saw an impressive 43% surge compared to the same period last year.
Meanwhile, the Chinese government continues to roll out similar incentives in other sectors, including electric vehicles. A separate 20,000 yuan (USD 2,850) subsidy is currently available to EV buyers, reinforcing China’s commitment to green technology and economic resilience.
Introduced in January and revamped in March, the trade-in and upgrade scheme expanded the list of eligible consumer goods from eight categories in 2024 to twelve in 2025, further broadening its impact on household consumption.
As Beijing aims to strengthen domestic demand amid rising global trade tensions, particularly with the United States, officials have hailed the success of the programme as a testament to consumer confidence and a step towards sustained economic recovery.
With more phases expected in the coming months, the subsidy-driven boom is likely to play a crucial role in China’s long-term economic planning, balancing export pressures with robust internal growth.