China to speed up replacement of cars & home appliances

China says it hopes to spur domestic consumption through the replacement of old cars and home appliances. The government will offer subsidies to car owners who trade in their old cars earlier than usual.

The central budget has set aside 5 billion yuan for this purpose, 5 times more than in previous year. In 9 provinces and municipalities including Beijing and Shanghai, consumers who swap old items for new ones will have 10 percent knocked off the price of the new ones.5 kinds of home appliances are covered, such as TV and PC. The central government has put aside 2 billion yuan for this.