Notice of the State Council on Issuing the Action Plan for Promoting Large-Scale Equipment Upgrading and Consumer Goods Trade-in

The State Council issued the "Promoting Large-Scale Equipment Renewal and

Notice on the Action Plan for the Replacement of Old Consumer Goods with New Consumer Goods

Guofa [2024] No. 7

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

The "Action Plan for Promoting Large-Scale Equipment Updates and Trade-in of Consumer Goods" is now issued to you. Please implement it conscientiously.

State Council　　　　　　　

March 7, 2024　　　　　

(This document is released publicly)

Driving large-scale equipment upgrades and

Consumer Goods Trade-in Action Plan

Promoting large-scale equipment renewal and the replacement of old consumer goods with new ones is an important measure to accelerate the construction of a new development pattern and promote high-quality development. It will effectively promote investment and consumption, which will benefit both the present and the long term. In order to implement the decisions and arrangements of the CPC Central Committee, the following action plan is formulated to promote a new round of large-scale equipment renewal and the replacement of old consumer goods with new ones.

I. General requirements

To promote large-scale equipment renewal and replacement of old consumer goods with new ones, we must be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement the spirit of the 20th National Congress of the Communist Party of China, implement the arrangements of the Central Economic Work Conference and the Fourth Meeting of the Central Financial and Economic Affairs Commission, coordinate the expansion of domestic demand and the deepening of supply-side structural reforms, implement four major actions: equipment renewal, replacement of old consumer goods with new ones, recycling and reuse, and standard improvement, vigorously promote the production and application of advanced equipment, promote the continuous increase in the proportion of advanced production capacity, promote more high-quality durable consumer goods into residents' lives, smooth the resource recycling chain, and significantly improve the quality and level of the national economic cycle.

——Adhere to market-oriented and government-guided policies. Give full play to the decisive role of the market in allocating resources, combine the differentiated needs of various types of equipment and consumer goods, and rely on the market to provide diversified supply and services. Better play the role of the government, increase policy support in finance, taxation, finance, investment, etc., make a good policy combination, guide businesses to make appropriate concessions, and form a scale effect of upgrading.

——Adhere to encouraging the advanced and eliminating the backward. Establish a long-term mechanism that combines incentives and constraints, accelerate the elimination of backward products and equipment, improve safety and reliability, and promote the high-end, intelligent, and green development of the industry. Accelerate the construction of a unified national market and eliminate local protectionism.

——Adhere to the guidance of standards and orderly improvement. Benchmark against international advanced levels, combine with the actual development of the industry, and accelerate the formulation and revision of standards in the fields of energy conservation and carbon reduction, environmental protection, safety, recycling, etc. Take into account the bearing capacity of enterprises and the acceptance of consumers, and promote the implementation of standards in an orderly manner.

By 2027, the scale of equipment investment in industries such as industry, agriculture, construction, transportation, education, culture, tourism, and medical care will increase by more than 25% compared with 2023; the energy efficiency of major energy-consuming equipment in key industries will basically reach the energy-saving level, and the proportion of production capacity with environmental protection performance reaching Class A will increase significantly. The penetration rate of digital R&D and design tools and the CNC rate of key processes of industrial enterprises above a designated size will exceed 90% and 75% respectively; the amount of scrapped cars recycled will increase by about one-fold compared with 2023, the volume of second-hand car transactions will increase by 45% compared with 2023, and the amount of used household appliances recycled will increase by 30% compared with 2023. The proportion of recycled materials in resource supply will be further increased.

2. Implement equipment update actions

(I) Promote equipment renewal and transformation in key industries. Focusing on promoting new industrialization, with energy conservation and carbon reduction, ultra-low emissions, safe production, digital transformation, and intelligent upgrading as important directions, we will focus on key industries such as steel, nonferrous metals, petrochemicals, chemicals, building materials, electricity, machinery, aviation, ships, textiles, and electronics, and vigorously promote the renewal and technological transformation of production equipment, energy-consuming equipment, and power transmission and distribution equipment. Accelerate the promotion of energy-consuming equipment that reaches advanced levels of energy efficiency and energy-saving levels, and implement energy-saving and carbon-reduction transformation in different industries and fields. Promote the application of intelligent manufacturing equipment and software, accelerate the construction and popularization of the industrial Internet, and cultivate a new model of digital economy empowerment. Strictly implement mandatory standards and equipment elimination catalog requirements such as energy consumption, emissions, and safety, and eliminate substandard equipment in accordance with laws and regulations.

(II) Accelerate the renewal of equipment in the field of buildings and municipal infrastructure. Focusing on the construction of new urbanization, combined with the promotion of urban renewal and renovation of old residential areas, we will focus on residential elevators, water supply, heating, gas supply, sewage treatment, sanitation, urban lifeline projects, and security, and promote renewal and renovation in a classified manner. Accelerate the renewal of old residential elevators that do not meet the current product standards and have high safety risks. Promote the upgrading and renovation of water plants and pressurized water supply facilities in various places. Promote the renovation of heat metering in an orderly manner, and continue to promote the renewal and renovation of heating facilities and equipment. Focus on exterior wall insulation, doors and windows, heating devices, etc., and promote energy-saving renovation of existing buildings. Continue to implement the renewal and renovation of aging pipelines such as gas. Accelerate the promotion of urban domestic sewage and garbage treatment facilities and equipment to make up for shortcomings and strengthen weaknesses. Promote the construction of supporting IoT intelligent sensing equipment for urban lifeline projects such as underground pipelines, bridges and tunnels, and manhole covers. Accelerate the renovation of security equipment such as video surveillance in key public areas and roads.

(III) Support the renewal of transportation equipment and old agricultural machinery. Continue to promote the electrification of urban buses and support the renewal of old new energy buses and power batteries. Accelerate the elimination of diesel trucks operating at the National III emission standard and below. Strengthen the industrialization capacity of green aviation equipment such as electric and hydrogen energy. Accelerate the scrapping and renewal of old ships with high energy consumption and high emissions, vigorously support the development of new energy powered ships, improve the supporting infrastructure and standards for new energy powered ships, and gradually expand the application scope of new energy ships such as electric, liquefied natural gas powered, biodiesel powered, and green methanol powered. Continue to implement the subsidy policy for the scrapping and renewal of agricultural machinery, combine the needs of agricultural production and the stage of agricultural mechanization development, and solidly promote the scrapping and renewal of old agricultural machinery and accelerate the adjustment of agricultural machinery structure.

(IV) Improve the level of education, culture, tourism and medical equipment. Promote qualified colleges and universities, vocational schools (including technical schools) to update and replace advanced teaching and scientific research equipment, and improve the level of teaching and scientific research. Strictly implement the configuration standards of subject teaching equipment, configure and update teaching instruments and equipment in a timely manner with quality and quantity. Promote the update and upgrade of cultural and tourism equipment such as cable cars, amusement equipment, and performing arts equipment. Strengthen the construction of a high-quality and efficient medical and health service system, promote the iterative upgrade of equipment and information facilities of medical and health institutions, and encourage qualified medical institutions to accelerate the update and transformation of medical equipment such as medical imaging, radiotherapy, remote diagnosis and treatment, and surgical robots. Promote the renovation and upgrading of wards in medical institutions to make up for the shortcomings of ward environment and facilities.

3. Implementing the old-for-new program for consumer goods

(V) Carry out car trade-in. Increase policy support, unblock circulation bottlenecks, and promote tiered and updated car consumption. Organize and carry out nationwide car trade-in promotion activities, encourage automobile manufacturers and sales companies to carry out promotion activities, and guide orderly competition in the industry. Strictly implement the mandatory scrapping standards for motor vehicles and vehicle safety and environmental inspection standards, and eliminate old cars that meet the mandatory scrapping standards in accordance with laws and regulations. Optimize car purchase restrictions according to local conditions and promote the construction of an information interaction system for the management of the entire life cycle of automobile use.

(VI) Carry out the trade-in of old home appliances. With the core of improving convenience, unblock the consumption chain of home appliance renewal. Support home appliance sales companies to jointly carry out trade-in promotion activities with production companies and recycling companies, set up online and offline home appliance trade-in areas, and provide discounts to consumers who exchange old home appliances for energy-saving home appliances. Encourage places with conditions to provide subsidies to consumers who purchase green and smart home appliances. Accelerate the implementation of the home appliance after-sales service improvement action.

(VII) Promote the replacement of home decoration consumer goods. Through various means such as government support and corporate profit sharing, support residents to carry out partial renovations such as renovation of old houses and kitchens and bathrooms, continue to promote home adaptation for the elderly, and actively cultivate new consumption such as smart homes. Promote the introduction of home decoration model rooms into shopping malls, communities, and platforms, encourage companies to create online model rooms, provide affordable products and services, and meet diversified consumer needs.

IV. Implementing recycling and reuse actions

(VIII) Improve the recycling network for used products and equipment. Accelerate the development of the "replacement + recycling" logistics system and new models, support durable consumer goods production and sales companies to build reverse logistics systems or cooperate with professional recycling companies to collect used consumer goods on-site. Further improve the recycling network for renewable resources and support the construction of a number of centralized sorting and processing centers. Optimize the layout of scrap car recycling and dismantling companies and promote the door-to-door car pick-up service model. Improve the recycling channels for office equipment in public institutions. Support the development of online trading platforms for used products and equipment.

(IX) Support the circulation and trading of second-hand goods. Continue to optimize the registration and management of second-hand car transactions and promote convenient transactions. Vigorously develop the export business of second-hand cars. Promote the standardization of second-hand electronic product transactions and prevent the leakage and malicious restoration of user information. Promote second-hand commodity trading platform companies to establish and improve the evaluation mechanism for dealers and users within the platform, and strengthen the sharing of information such as credit records and illegal and dishonest behaviors. Support electronic product manufacturers to develop second-hand transactions, renovation and repair and other businesses.

(10) Promote remanufacturing and cascade utilization in an orderly manner. Encourage the remanufacturing of qualified waste production equipment, and the quality characteristics and safety and environmental protection performance of remanufactured products and equipment should not be lower than those of the original new products. Promote the application of non-destructive testing, additive manufacturing, flexible processing and other technical processes to improve the level of remanufacturing and processing. Deepen the remanufacturing of traditional equipment such as automotive parts, construction machinery, and machine tools, and explore the remanufacturing of high-end equipment in emerging fields such as wind power photovoltaics and aviation. Accelerate the research and development of residual life assessment technology for wind power photovoltaics, power batteries and other products and equipment, and promote the cascade utilization of products, equipment and key components in an orderly manner.

(XI) Promote high-level recycling of resources. Promote the agglomeration and scale development of enterprises processing and utilizing recycled resources, and guide the gradual withdrawal of inefficient production capacity. Improve the support policy for the treatment of waste electrical and electronic products, and study the expansion of the coverage of the treatment system for waste electrical and electronic products. Support the construction of a number of industrial clusters for the deep processing of recycled resources such as scrap steel, scrap non-ferrous metals, and scrap plastics. Actively and orderly develop biomass liquid fuels with waste oil and non-grain biomass as the main raw materials. Explore the construction of an information-based traceability system for the use of recycled materials such as recycled plastics and recycled metals that meets international standards. Continue to improve the technical level of waste non-ferrous metal utilization, and strengthen the research and development and application of rare and precious metal extraction technology. Timely improve the import standards and policies for retired power batteries, recycled materials, etc.

V. Implementing standard improvement actions

(XII) Accelerate the improvement of energy consumption, emissions, and technical standards. Benchmarking against international advanced levels, accelerate the formulation and revision of a number of mandatory national standards for energy consumption limits and product and equipment energy efficiency, dynamically update the advanced level of energy efficiency, energy-saving level, and access level of key energy-consuming products and equipment, and accelerate the improvement of energy-saving indicators and market access thresholds. Accelerate the upgrade of relevant restriction standards for energy consumption values of passenger cars and heavy-duty commercial vehicles. Accelerate the improvement of emission standards for key industries, optimize and improve the emission control level of air and water pollutants. Revise and improve the clean production evaluation index system, and formulate and revise the carbon emission accounting standards for key industry enterprises. Improve standards for upgrading and decommissioning wind turbines, photovoltaic equipment, and products.

(XIII) Strengthen the improvement of product technical standards. Focus on major consumer products such as automobiles, home appliances, household products, consumer electronics, and civilian drones, and accelerate the upgrading of safety, health, performance, environmental protection, and testing standards. Accelerate the improvement of the quality and safety standard system for home appliances, and vigorously popularize the safe use period and energy-saving knowledge of home appliances. Accelerate the upgrading of consumer product quality standards, formulate a consumer product quality and safety supervision catalog, and strictly supervise quality and safety. Improve the standard system such as carbon labeling, and give full play to the role of standard guidance, green certification, and high-end certification.

(XIV) Strengthen the supply of resource recycling standards. Improve green design standards for materials and parts that are easy to recycle, disassemble, regenerate, and remanufacture. Formulate and revise recycling standards for renewable resources, such as recycling specifications for discarded electrical and electronic products. Issue national standards for information clearing methods in second-hand transactions of electronic products such as mobile phones and tablets, guide second-hand electronic product distributors to establish information security management systems and information technology service management systems, and study and formulate usability classification standards for second-hand electronic products.

(15) Strengthen the connection between domestic and international standards in key areas. Establish and improve the mechanism for tracking and converting the consistency of international standards, conduct comparative analysis between China's standards and relevant international standards, convert a number of advanced and applicable international standards, and continuously improve the conversion rate of international standards. Support domestic institutions to actively participate in the formulation and revision of international standards, and support the export of key industry standards such as new energy vehicles. Strengthen the connection between domestic and international standards, such as quality standards, inspection and quarantine, and certification and accreditation.

VI. Strengthening policy support

(XVI) Increase fiscal policy support. Include eligible equipment renewal and recycling projects in the scope of central budget investment and other funding support. Adhere to the joint support of the central and local governments for the replacement of old consumer goods with new ones, and support the replacement of old cars with new ones through the energy conservation and emission reduction subsidy funds arranged by the central finance; encourage local governments with conditions to coordinate the use of funds related to the modern commercial and trade circulation system arranged by the central finance, etc., to support the replacement of durable consumer goods in the fields of home appliances. Continue to implement subsidies for the renewal of old operating vehicles and ships, and support the renewal of old ships, diesel trucks, etc. Encourage local governments with conditions to coordinate the use of urban transportation development reward funds arranged by the central finance to support the renewal of new energy buses and batteries. Make good use of the subsidy policy for the scrapping and renewal of agricultural machinery. The central finance has set up special funds to support the recycling and treatment of waste electrical and electronic products. Further improve the government's green procurement policy and increase the procurement of green products. Strictly enforce financial discipline, strengthen the full process, full chain, and all-round supervision of fiscal funds, and improve the effectiveness and accuracy of the use of fiscal funds.

(XVII) Improve tax support policies. Increase tax incentives for energy conservation, water conservation, environmental protection, and safety production equipment, and include digital and intelligent transformation in the scope of incentives. Promote the practice of "reverse invoicing" by resource recycling companies to natural persons who sell scrapped products. Cooperate with the simplified value-added tax collection policy for renewable resource recycling companies, study and improve supporting measures for income tax collection and management, and optimize tax collection and management standards and methods.

18. Optimize financial support. Use refinancing policy tools to guide financial institutions to strengthen support for equipment renewal and technological transformation; the central government will provide certain interest subsidies for bank loans that meet the refinancing reimbursement conditions. Give full play to the role of the working mechanism for expanding the medium- and long-term loan issuance in the manufacturing industry. Guide banking institutions to reasonably increase green credit and strengthen financial support for the production, services and consumption of green smart home appliances. Encourage banking institutions to appropriately reduce the down payment ratio of passenger car loans and reasonably determine the term and credit limit of auto loans, provided that they comply with laws and regulations and risks are controllable.

19. Strengthen the guarantee of elements. Strengthen the guarantee of land use, energy use and other elements for enterprise technological transformation projects. Simplify the preliminary approval procedures for technological transformation projects that do not increase land use and are mainly for equipment renewal. Coordinate the construction of facilities for the classified collection, transfer storage and recycling of domestic waste in the region, include them in the scope of land use for public infrastructure, and ensure reasonable land use needs.

(XX) Strengthen innovation support. Focus on the industrial foundation and major technical equipment that have long plagued the transformation and upgrading of traditional industries, and actively carry out scientific and technological research on major technical equipment. Improve the mechanisms of "unveiling the list and taking charge", "horse racing" and innovative product iteration, strengthen the support for pilot production capacity in the manufacturing industry, and accelerate the industrialization and application of innovative achievements.

All regions and departments should, under the centralized and unified leadership of the Party Central Committee, improve the working mechanism, strengthen overall coordination, do a good job in policy interpretation, and create a good social atmosphere to promote large-scale equipment renewal and the replacement of old consumer goods with new ones. The National Development and Reform Commission should establish a special working group with relevant departments to strengthen coordination and cooperation and strengthen the linkage between the central and local governments. All relevant departments should formulate specific plans and supporting policies in accordance with the division of responsibilities, implement departmental responsibilities, strengthen follow-up analysis, and promote the implementation of various tasks. Important matters should be reported in a timely manner according to procedures.

Original link: https://www.gov.cn/zhengce/zhengceku/202403/content_6939233.htm

Reprinted from: Chinese Government Website