Further efforts are needed to propel the large-scale equipment upgrade and consumer goods trade-in program, so as to further unleash consumer and investment demand, said national legislators and political advisers.

The strategic move, discussed during the recently concluded two sessions, is vital for expanding domestic demand and fostering the growth of the circular economy, they said.

Their remarks follow the release of the Government Work Report recently, which stressed on the importance of revitalizing consumption. The report announced plans to issue 300 billion yuan ($41.3 billion) in ultra-long term special treasury bonds to support the consumer goods trade-in program, promoting the replacement of outdated items with newer, more environmentally friendly alternatives.

On the reasons behind the move, Shen Danyang, director of the Research Office of the State Council, highlighted the current economic challenge of insufficient overall demand and the potential challenges posed by external trade conflicts.

Tang Dongsheng, a professor at Foshan University, said that the consumer goods trade-in program significantly boosted demand in sectors like home appliances last year.

In 2024, under the trade-in policy, more than 36 million consumers purchased over 56 million household appliances, driving sales worth 240 billion yuan, according to the Ministry of Commerce.

"This year, the policy will expand to encompass a wider range of electronic products, smart devices, and intelligent, low-carbon equipment. It is also expected to drive the growth of the circular economy," he said.

Ding Jian, president of Xianyu, Chinese tech company Alibaba Group's online trading platform for used goods, said that the consumer goods trade-in policy encourages consumers to replace old products with more environmentally friendly and energy-efficient new products, thereby increasing the circulation of idle items, leading to an upswing in the used goods trading industry and the circular economy.

In addition to consumer goods trade-ins, the implementation of the large-scale equipment upgrade policy is also a key agenda for government work this year, as outlined by the Central Economic Work Conference in December.

Shan Zenghai, chief engineer and vice-president of the listed arm of construction equipment maker Xuzhou Construction Machinery Group, said further efforts are needed to promote the standardized and regulated development of the secondhand engineering machinery market to drive the green circular development of the industry.

Shan said China's secondhand vehicle market is expected to reach a market size of 150 billion yuan by the end of 2025.