China Unveils Initial $9 Billion in Consumer Subsidies for 2026

China will provide nearly $9 billion to subsidise its consumer goods trade-in drive next year, extending a stimulus program aimed at shoring up domestic demand and countering external headwinds faced by the world’s No. 2 economy.

The government plans to raise 62.5 billion yuan ($8.9 billion) to fund the first tranche of subsidies by selling ultra-long special sovereign bonds, the National Development and Reform Commission, China’s top economic-planning agency, said in a statement Tuesday.

The authorities will guide local governments to “pace the implementation appropriately and use the subsidies in a balanced and orderly way,” to maximise the impact of the policy, it added.

The Chinese government has been offering the subsidies since mid-2024 to stabilise consumption battered by a years-long housing slump and persistent deflation. The authorities have made expanding domestic demand their top economic priority next year as they remain vigilant for emerging tensions with other countries despite a tariff truce with the US.

A total of 300 billion yuan in subsidies was allocated this year for supporting purchases of consumer goods from cars and smartphones to home appliances, double the amount seen in 2024.

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