The property recession has not stopped in China.

In March 2024, the central government (State Council) notified the Action Plan for Promoting Major Equipment Upgrading and Replacement of Consumer Goods. It referred to initiatives throughout the entire lifecycle from production to consumption and collection, including the introduction of advanced equipment to improve product quality, the promotion of the distribution of used vehicles and a high standard of recycling.

The following month, 14 central ministries, including the Ministry of Commerce, published the Detailed Regulations for the Implementation of Subsidies for the Replacement of Consumer Goods. As a measure to promote the replacement of vehicles, 10,000 yuan/unit will be paid if a vehicle with an internal combustion engine under the Guo 3 emission system or a new energy vehicle registered before 30 April 2018 is scrapped and replaced with a new energy vehicle; if a vehicle with an internal combustion engine under the Guo 3 emission system is scrapped and replaced with a 2.0L displacement internal combustion engine vehicle, 7 The subsidy is provided at RMB 7,000/vehicle. The subsidy is shared between the central and local governments, with the share of the subsidy varying from region to region.

In 2024, the central government will spend RMB 6.44 billion on car replacement subsidies and local governments will spend RMB 4.76 billion. Local governments have set up their own policies, with different categories of vehicles to be replaced, their sales price, and whether they are replacing or buying a new car, and set the amount to be paid out for each.