To stimulate the economy and “optimize the implementation of new economic and social organizations,” China’s National Development and Reform Commission (NDRC) is providing RMB 62.5B ($8.92B) in trade-in subsidies to consumers next year.
The NDRC along with China’s Ministry of Finance are issuing ultra-long-term special treasury bonds to finance the trade-in program, part of Beijing’s effort to mitigate the impact from a soft housing market and lingering deflation.
In 2025, the NDRC allocated $42.8B in subsidies in 2025 to support purchases of a variety of consumer goods, including cars, smartphones, and home appliances, double the amount allocated in 2024, according to Bloomberg.
The statement from the NDRC underscores the government’s efforts to support the auto manufacturing sector, providing a tailwind to shares of NIO Inc (NIO), Li Auto (LI), XPeng (XPEV), and BYD (BYDDF).