Consumers anxious for detailed plan for subsidies on cars & home appliances

Video

Play VideoNew measures to speed replacement of cars, home appliances

The State Council plans to set aside two billion yuan to spur domestic consumption by encouraging consumers to replace old cars and home appliances. But as details of the program still have not been released, some worry about whether consumers will actually get much benefit.

Many home appliance retailers in Shanghai have posted signs that promise 50 to 600 yuan discounts to those who swap old appliances for new ones. This is after government's announcement that it will offer ten percent subsidies for the replacement.

One sales person of Suning said "The detailed plan for how the government subsidies will be offered has not be released."

Some retailers are concerned how the subsidies will be distributed.

Li Yan, Manager of Yongle said "So far, we have not known how the subsidies will be offered. If it is given to producers, producers should transfer it to retailers."

Some consumers are concerned that if the ten percent discounts are offered to producers, how much it will help consumers. They also worried that producers may raise prices for new appliance model. All this could mean the real benefit to consumers will be much less than ten percent.