Auto, appliance subsidy plan to spur 锟�500b spending

Commerce Minister Chen Deming

Commerce Minister Chen Deming said Tuesday that China's program to subsidize consumers when they replace their old vehicles and home appliances with new ones could lead to more than 500 billion yuan in spending.

Under the program, consumers who trade in their used mid- and small-sized trucks and some types of mid-sized passenger cars for new ones will receive a subsidy ranging from 3,000 yuan to 6,000 yuan.

It's estimated the replacement plan will result in the disposal of 2.7 million vehicles.

The central government said in May it will allocate 5 billion yuan for auto subsidies to encourage consumers to buy new vehicles to replace old ones, and will spend 2 billion yuan for a similar subsidy on household appliances.

The program was designed by the Ministry of Finance along with the cooperation of 10 other ministries, including the Ministry of Commerce and the National Development and Reform Commission.

Agencies and Shi Jierui contributed to this story

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