300 billion yuan! Afterburner supports large-scale equipment refresh and consumer trade-in

The National Development and Reform Commission and the Ministry of Finance issued a notice on several measures to support large-scale equipment renewal and trade-in of consumer goods

Development and Reform Environmental Resources [2024] No. 1104

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

The State Council has approved the "Several Measures on Supporting Large-scale Equipment Renewal and Trade-in of Consumer Goods". It is hereby issued to you, and you are requested to conscientiously implement it.

National Development and Reform Commission

treasury

July 24, 2024

A number of measures have been taken to support large-scale equipment renewal and trade-in of consumer goods

In order to fully implement the spirit of the 20th National Congress of the Communist Party of China and the 2nd and 3rd Plenary Sessions of the 20th Central Committee, and conscientiously implement the decisions and arrangements of the Party Central Committee and the State Council, in accordance with the "Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in" (Guo Fa [2024] No. 7), the following measures are hereby proposed to make overall arrangements for about 300 billion yuan of ultra-long-term special treasury bond funds to support large-scale equipment renewal and consumer goods for new ones.

1. Increase support for equipment updates

(1) Optimize the support method for equipment renewal projects. Arrange special funds for large-scale equipment renewal of ultra-long-term special treasury bonds, and increase support for equipment renewal. On the basis of equipment renewal and recycling in the fields of industry, environmental infrastructure, transportation, logistics, education, cultural tourism, medical care, etc., the scope of support will be expanded to equipment renewal in the fields of energy and power, old elevators, and energy conservation, carbon reduction and safety transformation in key industries, and dynamically adjusted in combination with the actual situation. Taking into account the characteristics of different fields, we will lower the threshold for the declaration of ultra-long-term special treasury bond funds, and no longer set the requirement of "the total investment of the project shall not be less than 100 million yuan", so as to support the equipment renewal of small and medium-sized enterprises. Relevant projects will be supported by the National Development and Reform Commission in the form of investment subsidies, simplifying the application and approval process, and effectively improving work 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 more than 10 years of age for inland passenger ships, more than 15 years for cargo ships, and more than 15 years for coastal passenger ships and more than 20 years old for cargo ships. If it is updated to a fuel-powered ship or a new energy and clean energy ship on the basis of scrapping, it will be subsidized at a rate of 1,500-3,200 yuan/gross ton according to different ship types; New energy and clean energy ships will be subsidized at 1,000-2,200 yuan/gross tonnage according to different ship types; If only the old operating ships are scrapped in advance, the average subsidy will be 1,000 yuan/gross tonnage.

(3) Support the scrapping and renewal of old operating trucks. Support the scrapping of diesel trucks operating with emission standards of China III and below, and accelerate the replacement of low-emission trucks. scrap and renew the purchase of eligible trucks, with an average subsidy of 80,000 yuan per vehicle; The average subsidy per vehicle is 35,000 yuan, and the average subsidy per vehicle is 30,000 yuan for the early scrapping of old diesel trucks.

(4) Increase the subsidy standard for scrapping and updating agricultural machinery. Focus on ensuring the stable and safe supply of grain and important agricultural products, improve the enthusiasm of farmers and agricultural production and operation organizations to scrap and update old agricultural machinery, and on the basis of the "Notice on Increasing Work Efforts and Continuing to Implement the Subsidy Policy for the Scrapping and Renewal of Agricultural Machinery" (Nongban Machinery [2024] No. 4), scrap tractors below 20 horsepower, and increase the maximum scrapping subsidy for a single unit from 1,000 yuan to 1,500 yuan; Scrap combine harvesters, seeders, etc. and purchase new machinery of the same type, on the basis of the current subsidy standard, increase the scrapping subsidy standard by no more than 50%; Scrap and update the purchase of cotton pickers, and the maximum scrapping subsidy for a single unit is increased from 30,000 yuan to 60,000 yuan. Each region can determine the new agricultural machinery types into the scope of subsidies according to the actual situation, and determine the subsidy standards according to the existing regulations.

(5) Increase the subsidy standards for new energy buses and power battery updates. Promote the electrification of urban buses, and support the renewal of new energy buses and power batteries. The average subsidy per vehicle is 60,000 yuan per vehicle for new energy buses and power batteries that are 8 years old and above.

(6) Increase the proportion of financial discount for equipment renewal loans. Give full play to the role of re-lending policy tools to guide financial institutions to support equipment renewal and technological transformation. For the principal of bank loans for business entities that meet the conditions of the "Notice on Implementing the Financial Interest Discount Policy for Equipment Renewal Loans" (Cai Jin [2024] No. 54), the central government will increase the interest discount from 1 percentage point to 1.5 percentage points, with an interest discount period of 2 years and a total scale of 20 billion yuan.

2. Support the trade-in of consumer goods

(7) Support local governments to improve their ability to trade in consumer goods. Directly arrange ultra-long-term special treasury bond funds to support local governments to independently improve the ability of consumer goods to be traded. The National Development and Reform Commission and the Ministry of Commerce and Finance shall reasonably determine the scale of support funds for each region by taking into account factors such as the permanent resident population, regional GDP, and the number of automobiles and household appliances in each region. All regions should focus on supporting the scrapping and renewal of automobiles and the replacement of passenger cars for individual consumers, the trade-in of household appliances and electric bicycles, the partial transformation of old houses, kitchens and bathrooms, and the purchase of items and materials used in the transformation of homes for the elderly, so as to promote smart home consumption.

(8) Raise the subsidy standard for scrapping and renewal of automobiles. On the basis of the "Implementation Rules for Automobile Trade-in Subsidy" (Shang Ji Han [2024] No. 75), individual consumers scrap fuel passenger cars with emission standards of China III and below or new energy passenger vehicles registered before April 30, 2018 (including that date), and purchase new energy passenger vehicles or fuel passenger vehicles with a displacement of 2.0 liters and below that are included in the "Catalogue of New Energy Vehicle Models Exempted from Vehicle Purchase Tax", and the subsidy standard is increased to 20,000 yuan for the purchase of new energy passenger vehicles. The purchase of 2.0 liters and below displacement fuel passenger cars will be subsidized by 15,000 yuan. Consumers who apply for subsidies from the date of issuance of the "Detailed Rules for the Implementation of Car Trade-in Subsidy" shall be subsidized in accordance with the standards of this notice. Consumers apply for subsidies according to the standards of this notice, and the corresponding scrapped motor vehicles must be registered in their names before the date of issuance of this notice.

(9) Support the trade-in of household appliances. Trade-in subsidies will be given to individual consumers who purchase 8 types of household appliances such as refrigerators, washing machines, televisions, air conditioners, computers, water heaters, household stoves, and range hoods with energy efficiency or water efficiency standards of level 2 or above. The subsidy standard is 15% of the sales price of the product, and an additional 5% subsidy will be given to the purchase of products with energy efficiency or water efficiency standards of level 1 and above. Each consumer can subsidize 1 piece of each type of product, and the subsidy for each piece does not exceed 2,000 yuan. The Ministry of Commerce guides all regions to do a good job of connecting preferential policies in light of actual conditions to ensure a smooth and orderly transition of policies.

(10) Implement the financial support policy for the recycling and disposal of waste electrical and electronic products. In 2024, the central government will allocate 7.5 billion yuan to continue to support the recycling and treatment of waste electrical and electronic products in the form of "substitution of awards and subsidies" to promote the healthy development of the industry. By the end of 2023, if waste electrical and electronic products are recycled and disposed of in accordance with the provisions of the waste electrical and electronic product disposal fund subsidy but have not yet been subsidized, they will be supported in installments after verification and approval by the Ministry of Ecology and Environment.

3. Strengthen organization and implementation

(11) Clarify funding channels. The National Development and Reform Commission will take the lead in arranging about 148 billion yuan of special funds for large-scale equipment renewal of ultra-long-term special treasury bonds for the implementation of the support policies listed in Articles (1) and (2) of this Notice; About 150 billion yuan of ultra-long-term special treasury bond funds will be directly arranged to local governments to implement the support policies listed in Articles (3), (4), (5), (7), (8) and (9). The Ministry of Finance has allocated 27.5 billion yuan of central financial funds through the original channels to implement the supporting policies listed in Articles (6) and (10). The support funds involved in Articles (3), (5), (7), (8) and (9) shall be shared by the central government and the local government in accordance with the overall principle of 9:1, and the proportion of the central government in the eastern, central, and western regions shall be 85%, 90%, and 95% respectively. The provincial finance department shall arrange matching funds in proportion to the distribution of central funds. All regions should strictly implement the support standards for relevant fields specified in this notice, and the support standards for other fields shall be reasonably formulated by each region in light of actual conditions, to ensure that the investment of funds meets policy requirements and to ensure that real money discounts reach consumers directly. If a region runs out of the amount of funds issued by the central government, the excess part will be supported by the region through local funds, and the central government will no longer bear the burden. As of December 31, 2024, the unused amount of funds issued by the central government will be returned to the central government.

(12) Strengthen organizational leadership. The National Development and Reform Commission and the Ministry of Finance will make overall arrangements for ultra-long-term special treasury bond funds and central financial funds to support large-scale equipment renewal and trade-in of consumer goods, and work with relevant departments to formulate relevant implementation plans and management measures, clarify work requirements, consolidate the responsibilities of all parties, and refine the operation process. The Ministry of Transport, the Ministry of Agriculture and Rural Affairs, and the Ministry of Commerce shall refine the subsidy standards and implementation rules in relevant fields according to the division of responsibilities, and organize all regions to implement support policies such as the renewal of old operating vehicles and ships, the renewal of new energy buses and power batteries, the scrapping and renewal of agricultural machinery, the scrapping of automobiles and the replacement of passenger cars for individual consumers, and the trade-in of household appliances. The provincial-level people's governments should formulate implementation plans and special management measures, clarify the division of tasks, refine the implementation of measures, strengthen overall planning, give full play to creativity, and promote the implementation of various policies to support large-scale equipment renewal and consumer goods trade-in.

(13) Strengthen project and fund management. In accordance with the division of responsibilities, relevant departments are to strengthen local supervision and guidance, coordinate the development of online monitoring and early warnings and offline on-the-spot inspections, and promptly remind and urge rectification of problems such as untimely allocation of funds, slow use, and misappropriation. The provincial-level people's governments are the main body responsible for the management of projects and funds, and must strictly manage the funds of ultra-long-term special treasury bonds, and shall not be used to balance local budgets, repay local government debts, or local "three guarantees", and shall not raise matching funds through borrowing. Local development and reform departments should play a comprehensive and coordinating role and take the lead in project organization and fund allocation. Local financial departments should cooperate with local development and reform and industry authorities to scientifically and reasonably formulate fund calculation plans, grasp the rhythm of strength, reasonably allocate funds, do a good job in monitoring and early warning, strengthen supervision and verification, and effectively improve the efficiency of fund use. For those who do not meet the above requirements and violate financial and economic discipline, the funds should be recovered in a timely manner, and the responsibility of the relevant responsible personnel should be seriously investigated.

(14) Create a good market environment. All regions should support enterprises with different ownership systems and different places of registration to participate in large-scale equipment renewal and trade-in of consumer goods. The market supervision department should follow up in a timely manner to strengthen product quality and price supervision, strengthen product quality supervision and spot checks, increase defect investigation and recall, urge enterprises to implement the main responsibility for quality and safety, strictly investigate and deal with price fraud and other behaviors, and vigorously safeguard the legitimate rights and interests of consumers. Where it is discovered that there are illegal acts such as using improper means to defraud subsidy funds, all regions should seriously deal with them in accordance with laws and regulations, and those suspected of committing crimes should be transferred to the judicial organs for strict investigation and punishment in accordance with law.

(15) Timely follow-up and accountability. The Ministry of Transport, the Ministry of Agriculture and Rural Affairs, the Ministry of Commerce and other departments and provincial-level people's governments shall carry out self-assessment and self-examination of the progress of work, project implementation, use of funds, and achievement of performance targets, and promptly report the use of funds and the completion of performance targets to the National Development and Reform Commission and the Ministry of Finance. The National Development and Reform Commission and the Ministry of Finance summarize and form a performance evaluation report, and use the evaluation results as an important basis for subsequent optimization of funding arrangements.

(16) Strengthen publicity and guidance. All regions and relevant departments should promptly release information on large-scale equipment updates and trade-in of consumer goods through government websites, new government media, government service platforms, etc., strengthen policy interpretation, respond to social concerns, guide all sectors of society to actively participate, and vigorously create a good social atmosphere. Summarize and promote advanced experience and typical practices in a timely manner. Encourage all regions and industry associations to strengthen the connection between supply and demand, and promote the exchange and promotion of advanced products and models.

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Source: WeChat of the National Development and Reform Commission

Editor: Qiao Hong Proofreader: Yang Yakang