Major positive news! 300 billion yuan in government bonds to provide stronger support!

Notice of the National Development and Reform Commission and the Ministry of Finance on Issuing "Several Measures to Strengthen Support for Large-scale Equipment Renewal and Consumer Goods Trade-in"

NDRC Huanzi [2024] No. 1104

To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, and to all ministries and commissions of the State Council and all agencies directly under the State Council:

The "Several Measures to Strengthen Support for Large-scale Equipment Renewal and Consumer Goods Trade-in" have been approved by the State Council. They are hereby issued to you; please implement them conscientiously.

Ministry of Finance

Several Measures to Strengthen Support for Large-Scale Equipment Renewal and Trade-In of Consumer Goods

To fully implement the spirit of the 20th National Congress of the Communist Party of China and the Second and Third Plenary Sessions of the 20th Central Committee, earnestly carry out the decision-making arrangements of the CPC Central Committee and the State Council, and in accordance with the "Action Plan for Promoting Large-Scale Equipment Renewal and Trade-In of Consumer Goods" (Guo Fa [2024] No. 7), the following measures are hereby proposed to coordinate the arrangement of approximately 300 billion yuan in ultra-long-term special treasury bond funds to strengthen support for large-scale equipment renewal and trade-in of consumer goods.

I. Increase support for equipment renewal

(1) Optimize the support methods for equipment renewal projects. Allocate special funds from ultra-long-term special treasury bonds for large-scale equipment renewal to increase support for equipment renewal. On the basis of equipment renewal and recycling in fields such as industry, environmental infrastructure, transportation, logistics, education, culture and tourism, and healthcare, expand the scope of support to equipment renewal in energy and power, old elevators, and other areas, as well as energy saving, carbon reduction, and safety upgrades in key industries, with dynamic adjustments based on actual conditions. Take into account the characteristics of different fields, lower the threshold for applying for ultra-long-term special treasury bond funds, remove the requirement that "the total project investment shall not be less than 100 million yuan", and support equipment renewal for small and medium-sized enterprises. Relevant projects will be supported by the National Development and Reform Commission through investment subsidies and other means, simplifying the application and approval process to effectively improve administrative efficiency.

(2) Support the scrapping and renewal of old operating ships. Accelerate the scrapping and renewal of old ships with high energy consumption and high emissions, and promote the development of new energy and clean energy ships. Support the scrapping and renewal of old ships with an age of more than 10 years for inland passenger ships, more than 15 years for cargo ships, more than 15 years for coastal passenger ships, and more than 20 years for cargo ships. For ships updated to fuel-powered ships or new energy and clean energy ships on the basis of scrapping, subsidies will be granted at 1,500–3,200 yuan/gross ton according to different ship types; for newly built new energy and clean energy ships, subsidies will be granted at 1,000–2,200 yuan/gross ton according to different ship types; for early scrapping of old operating ships only, an average subsidy of 1,000 yuan/gross ton will be granted.

(3) Support the scrapping and renewal of old operating trucks. Support the scrapping of operational diesel trucks with National III and below emission standards, and accelerate their renewal to low-emission trucks. For scrapping and purchasing eligible trucks, an average subsidy of 80,000 yuan per vehicle will be provided; for purchasing eligible trucks without scrapping, an average subsidy of 35,000 yuan per vehicle will be provided; for early scrapping of old operational diesel trucks only, an average subsidy of 30,000 yuan per vehicle will be provided.

(4) Raise the subsidy standards for the scrapping and renewal of agricultural machinery. Focusing on ensuring the stable and safe supply of grain and important agricultural products, increase the enthusiasm of farmers and agricultural production and operation organizations to scrap and renew old agricultural machinery. On the basis of the "Notice on Increasing Efforts to Continuously Implement the Subsidy Policy for the Scrapping and Renewal of Agricultural Machinery" (Nong Ban Ji [2024] No. 4), for tractors with less than 20 horsepower scrapped, the maximum scrapping subsidy per unit has been increased from 1,000 yuan to 1,500 yuan; for combine harvesters, seeders, etc. scrapped and new machines of the same type purchased, the scrapping subsidy standard has been increased by no more than 50% on the basis of the current subsidy standard; for cotton pickers scrapped and renewed, the maximum scrapping subsidy per unit has been increased from 30,000 yuan to 60,000 yuan. Each region may determine on its own, based on actual conditions, to include no more than 6 additional types of agricultural machinery in the subsidy scope, and calculate and determine the subsidy standards according to existing regulations.

(5) Raise the subsidy standards for updating new energy buses and power batteries. Promote the electrification replacement of urban buses, and support the updating of new energy buses and power batteries. For new energy buses and power batteries with a service life of 8 years or more, the average subsidy is 60,000 yuan per vehicle.

(6) Increase the fiscal interest subsidy ratio for equipment update loans. Leverage the policy tool of relending to guide financial institutions in supporting equipment updates and technological transformations. For the principal of bank loans to eligible business entities that meet the conditions of the "Notice on Implementing the Fiscal Interest Subsidy Policy for Equipment Update Loans" (Cai Jin [2024] No. 54), the central fiscal interest subsidy rate will be increased from 1 percentage point to 1.5 percentage points, with a subsidy period of 2 years and a total subsidy scale of 20 billion yuan.

II. Intensify Support for Trade-in of Consumer Goods

(7) Support localities in enhancing their capacity for trade-in of consumer goods. Directly allocate funds from ultra-long-term special treasury bonds to support localities in independently enhancing their capacity for trade-in of consumer goods. The National Development and Reform Commission, in consultation with the Ministry of Finance, will reasonably determine the scale of support funds for each region based on factors such as the permanent resident population, regional gross domestic product, and the number of cars and home appliances owned in each region. Each region should focus its support on the scrapping and updating of cars and the replacement and updating of passenger cars by individual consumers, the trade-in of home appliance products and electric bicycles, the purchase of items and materials used for partial renovation of old houses, kitchens and bathrooms, and age-friendly home renovations, so as to promote smart home consumption, etc.

(8) Raise the subsidy standards for car scrapping and updating. On the basis of the "Detailed Rules for the Implementation of Subsidies for Car Trade-in" (Shang Xiaofei Han [2024] No. 75), if individual consumers scrap fuel-powered passenger cars with emission standards of China III or below, or new energy passenger cars registered before April 30, 2018 (inclusive), and purchase new energy passenger cars included in the "Catalogue of New Energy Vehicle Models Eligible for Vehicle Purchase Tax Reduction and Exemption" or fuel-powered passenger cars with a displacement of 2.0 liters or below, the subsidy standards will be increased to 20,000 yuan for the purchase of new energy passenger cars and 15,000 yuan for the purchase of fuel-powered passenger cars with a displacement of 2.0 liters or below. Consumers who apply for subsidies from the date of issuance of the "Detailed Rules for the Implementation of Subsidies for Car Trade-in" shall receive subsidies in accordance with the standards of this Notice. For consumers who apply for subsidies in accordance with the standards of this Notice, the corresponding scrapped motor vehicles must have been registered in their names before the date of issuance of this Notice.

(9) Support the trade-in of home appliance products. Provide trade-in subsidies to individual consumers who purchase eight categories of home appliances, including refrigerators, washing machines, televisions, air conditioners, computers, water heaters, household stoves, and range hoods, that meet energy efficiency or water efficiency standards of Grade 2 or above. The subsidy standard is 15% of the product's sales price; for products meeting energy efficiency or water efficiency standards of Grade 1 or above, an additional subsidy of 5% of the product's sales price will be granted. Each consumer may receive a subsidy for one item per product category, with a maximum subsidy of 2,000 yuan per item. The Ministry of Commerce will guide all regions to effectively align preferential policies based on local conditions, ensuring a smooth and orderly policy transition.

(10) Implement funding support policies for the recycling and treatment of waste electrical and electronic products. In 2024, the central finance will allocate 7.5 billion yuan, adopting a "reward instead of subsidy" approach to continue supporting the recycling and treatment of waste electrical and electronic products, promoting the healthy development of the industry. By the end of 2023, for waste electrical and electronic products that have been recycled and treated in accordance with regulations such as the Waste Electrical and Electronic Products Treatment Fund subsidies but have not yet received subsidies, support will be provided in installments based on actual verification and approval by the Ministry of Ecology and Environment.

III. Strengthening Organization and Implementation

(11) Clarify funding channels. The National Development and Reform Commission will take the lead in arranging approximately 148 billion yuan of special funds from ultra-long-term special treasury bonds for large-scale equipment updates, to implement the support policies listed in Articles (1) and (2) of this Notice; directly arrange approximately 150 billion yuan of ultra-long-term special treasury bond funds to localities, to implement the support policies listed in Articles (3), (4), (5), (7), (8), and (9). The Ministry of Finance will arrange 27.5 billion yuan of central fiscal funds through existing channels to implement the support policies listed in Articles (6) and (10). The support funds involved in Articles (3), (5), (7), (8), and (9) shall be shared between the central and local governments according to the overall principle of 9:1, with the central government bearing 85%, 90%, and 95% in the eastern, central, and western regions, respectively. Provincial finances shall arrange matching funds in proportion to the allocation of central funds. All regions must strictly implement the support standards specified in this Notice for relevant fields, while support standards for other fields shall be reasonably formulated by each region based on actual conditions, ensuring that fund investments comply with policy requirements and that tangible benefits reach consumers directly. If a region exhausts the central fund quota allocated to it, the excess portion shall be supported by local funds, with no further burden on the central government. Any unused central fund quota allocated by December 31, 2024, shall be reclaimed by the central government.

(12) Strengthen organizational leadership. The National Development and Reform Commission and the Ministry of Finance will coordinate the arrangement of ultra-long-term special treasury bond funds and central fiscal funds to support large-scale equipment updates and consumer goods trade-ins, work with relevant departments to formulate implementation plans and management measures, clarify work requirements, consolidate responsibilities of all parties, and refine operational procedures. The Ministry of Transport, the Ministry of Agriculture and Rural Affairs, the Ministry of Commerce, and others will refine subsidy standards and implementation rules for relevant fields according to their respective duties, and organize all regions to implement support policies such as the update of old operating vehicles and vessels, the update of new energy buses and power batteries, the scrapping and updating of agricultural machinery, the scrapping and updating of automobiles, the replacement and updating of passenger cars by individual consumers, and the trade-in of home appliance products. Provincial people's governments must formulate implementation plans and special management measures, clarify task divisions, refine implementation measures, strengthen coordinated promotion, fully unleash creativity, and promote the effective implementation of various policies supporting large-scale equipment updates and consumer goods trade-ins.

(13) Strengthen project and fund management. Relevant departments shall, in accordance with their respective responsibilities, strengthen supervision and guidance for localities, coordinate online monitoring and early warning with offline on-site verification, and promptly remind and urge rectification of issues such as untimely fund allocation, slow utilization, and misappropriation or diversion of funds. Provincial-level people's governments are the primary entities responsible for project and fund management; they must strictly manage ultra-long special sovereign bond funds, which shall not be used to balance local budgets, repay local government debts, or cover local "three guarantees" (basic livelihood, wages, and operation), and matching funds shall not be raised through borrowing. Local development and reform departments shall play a comprehensive coordinating role, taking the lead in project organization and fund allocation. Local finance departments shall cooperate with local development and reform departments and industry competent authorities to scientifically and reasonably formulate fund calculation plans, control the intensity and pace, disburse funds reasonably, perform monitoring and early warning, strengthen supervision and verification , and effectively improve fund utilization efficiency. For cases that do not meet the above requirements or violate financial discipline, funds shall be recovered promptly, and relevant responsible personnel shall be held strictly accountable.

(14) Create a favorable market environment. All regions shall support enterprises of different ownership types and registration locations equally to participate in large-scale equipment updates and consumer goods trade-in programs. Market regulation departments shall timely follow up and strengthen product quality and price supervision, intensify random inspections of product quality, increase efforts in defect investigation and recalls, urge enterprises to fulfill their main responsibility for quality and safety, strictly investigate and punish acts such as price fraud, and vigorously safeguard the legitimate rights and interests of consumers. For illegal acts such as using improper means to defraud subsidy funds discovered in various regions, they shall be dealt with seriously in accordance with laws and regulations, and cases suspected of constituting crimes shall be transferred to judicial organs for severe punishment in accordance with the law.

(15) Timely tracking and effectiveness assessment. The Ministry of Transport, the Ministry of Agriculture and Rural Affairs, the Ministry of Commerce and other departments, as well as provincial-level people's governments, shall conduct self-evaluation and self-inspection on work progress, project implementation, fund utilization, and achievement of performance targets, and promptly report the status of fund utilization and performance target completion to the National Development and Reform Commission and the Ministry of Finance. The National Development and Reform Commission, in consultation with the Ministry of Finance, will compile a performance evaluation report, and the evaluation results will serve as an important basis for subsequent optimization of fund arrangements.

(16) Strengthen publicity and guidance. All regions and relevant departments shall timely release information related to large-scale equipment updates and consumer goods trade-in programs through government websites, government new media, and government service platforms, strengthen policy interpretation, respond to social concerns, guide all sectors of society to actively participate, and vigorously create a favorable social atmosphere. Summarize and promote advanced experiences and typical practices at appropriate times. Encourage all regions and industry associations to strengthen supply-demand docking and promote the exchange and promotion of advanced products and models.