On March 7, 2024, the State Council unveiled the Action Plans for Promoting Large-Scale Equipment Renewal and Consumer Goods Replacement (hereinafter referred to as "the Action Plan"). This initiative outlines several key strategies aimed at fostering:
The revitalization of equipment across various sectors including industry, construction, and transportation.
Initiatives for the exchange of outdated consumer products like automobiles, household appliances, and home furnishings.
Promotion of waste material recycling and reutilization.
Implementation of standardized enhancements.
The primary objectives of the Action Plan encompass advancing industrial evolution, conserving energy, reducing emissions, and stimulating consumption.
Key highlights of the Action Plan include:
Renewal and Transformation of Key Industries' Equipment: Prioritizing sectors such as steel, non-ferrous metals, petrochemicals, machinery, and electronics, the plan advocates for the vigorous renewal and technological upgrade of production, energy utilization, and power transmission equipment. It aims to expedite the adoption of energy-efficient equipment and foster the deployment of intelligent manufacturing technologies, alongside enforcing strict adherence to energy consumption and emission standards.
Enhancement of Energy Efficiency and Emission Standards: The plan emphasizes benchmarking against global standards to accelerate the revision of national energy consumption limits and equipment efficiency standards. Moreover, it aims to bolster emission standards across key industries while refining evaluation systems for clean production and carbon emissions.
To facilitate the execution of these initiatives, the Action Plan introduces supportive policies:
Fiscal Measures: Eligible equipment renewal and recycling projects are eligible for funding support from the central budget, with additional subsidies allocated for agricultural machinery renewal. Special funds are earmarked for the recycling and disposal of discarded electrical and electronic products, while government green procurement policies are to be reinforced.
Tax Incentives: Tax breaks are proposed for energy-saving, water-saving, and environmentally friendly equipment, including those undergoing digital and intelligent transformations.
Financial Support: Leveraging refinancing policies, financial institutions are encouraged to provide robust support for equipment renewal and technological advancements. The central government offers interest subsidies for bank loans meeting specified criteria.
Issued by the State Council, the Action Plan serves as a pivotal policy directive poised to stimulate the renewal and replacement of consumer goods and industrial equipment, presenting novel opportunities for manufacturers specializing in intelligent and eco-friendly products. Additionally, it underscores China's unwavering commitment to stringent energy conservation and emission reduction measures, potentially posing challenges for overseas manufacturers of such product.
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