Beijing Youth Daily:

The large-scale equipment upgrades and consumer goods trade-in programs implemented this year are important measures driving high-quality development. These measures are conducive to both investment and consumption. I'd like to ask, according to tax data, how have these two measures progressed? Thank you.

Rao Lixin:

I would like to invite Mr. Dai to answer this question.

Dai Shiyou:

Thank you for your question. The large-scale equipment upgrades and consumer goods trade-ins were initiated by the CPC Central Committee and the State Council as a major move to drive China's overall high-quality development. In March, the State Council issued an action plan for promoting large-scale equipment renewal and consumer goods trade-ins, and relevant departments and local governments subsequently rolled out supporting measures to ensure their effective execution.

Driven by these policies, enterprises significantly accelerated their equipment renewal. VAT invoice data show that from April to August this year, the value of machinery equipment purchased by enterprises nationwide increased by 5.6% year on year, with a growth rate 7.6 percentage points higher than in March, before the introduction of the action plan. The effect is especially noticeable in three key areas. Industrial enterprises have accelerated equipment renewal, with purchase increasing by 4.4% year on year from April to August, 5.5 percentage points higher than in March. Information and technology industry upgrades also accelerated. From April to August, machinery equipment purchases by the information technology service industry and the scientific research and technology service industry surged by 17.7% and 20% year on year, respectively, up 16 and 10.6 percentage points from March. Transportation and rental business service equipment updates accelerated. From April to August, machinery equipment procurement by the transportation industry and rental business service equipment industry increased by 0.4% and 16.1% year on year, respectively, 15 and 19.2 percentage points higher than in March.

Driven by factors such as national incentives, local support, and enterprise concessions, VAT invoice data shows that consumer demand for automobiles, home appliances, and furnishings has gradually increased. New energy vehicle (NEV) sales increased significantly, and second-hand car sales accelerated. From April to August, NEV sales jumped by 38.4% year on year, 10.9 percentage points higher than in March. Meanwhile, second-hand vehicle sales rose by 6.2% year on year, 10.8 percentage points higher than in March. Home appliance sales improved. From April to August, sales of household appliances like refrigerators and household audio-visual equipment such as televisions increased by 2.4% and 5% year on year, respectively, 2.8 and 11.6 percentage points higher than in March. Furniture and sanitary ware products were selling well. From April to August, retail sales revenue of furniture and sanitary ware grew by 8.9% and 12% year on year, respectively, 8.3 and 22.6 percentage points higher than in March.

Next, the tax department will continue to implement various tax and fee support policies in accordance with the deployment and requirements of the CPC Central Committee and the State Council. This will better facilitate and enhance the efficiency of large-scale equipment upgrades and consumer goods' trade-ins. Thank you.