What is the significance of the redeployment of equipment renewal and trade-in by the NPC？

　　On July 19th, according to Xinhua News Agency, Premier Li Qiang of the State Council presided over the the State Council executive meeting on the same day, which studied the policies and measures to strengthen support for large-scale equipment renewal and trade-in of consumer goods.

　　The meeting pointed out that large-scale equipment renewal and trade-in of consumer goods are highly tractive, and increasing policy support is conducive to better releasing the potential of domestic demand. The meeting decided to make overall arrangements for ultra-long-term special treasury bonds to further promote large-scale equipment renewal and trade-in of consumer goods.

　　The Red Star journalist noted that on March 1 this year, the Standing Committee of the State Council deliberated and adopted the Action Plan for Promoting Large-scale Equipment Renewal and Trade-in of Consumer Goods. At that time, the meeting proposed that we should increase fiscal, taxation, financial and other policy support in combination with the differentiated needs of upgrading various types of equipment and consumer goods, give better play to the traction role of energy consumption, emissions, technology and other standards, and promote "trade-in".

　　What signals have been released from the "old-for-new" meeting of the National People’s Congress? How to ensure the policy landing? On July 20th, Bai Ming, a member of the Academic Degrees Committee of the Research Institute of the Ministry of Commerce, said in an interview with Red Star News reporter that the decision of the Standing Committee of the State Council to further promote large-scale equipment renewal and trade-in of consumer goods is undoubtedly a new kinetic energy for China’s economic development and a key means to promote the development level of manufacturing industry and improve the quality of consumer products.

　　Further promote "trade-in"

　　Ultra-long-term special national debt is a realistic choice.

　　The Standing Committee of the State Council decided to make overall arrangements for extra-long special treasury bonds to further promote large-scale equipment renewal and trade-in of consumer goods.

　　In this regard, Su Jian, a professor at Peking University University of Economics, said in an interview with Red Star News reporter that under the current economic situation, the decision of the Standing Committee of the State Council to make overall arrangements for ultra-long-term treasury bonds to further promote large-scale equipment renewal and trade-in of consumer goods is a practical choice. By issuing ultra-long-term treasury bonds, it will definitely help support economic growth and stabilize the economic situation in the short term.

　　Bai Ming, a member of the Academic Degrees Committee of the Research Institute of the Ministry of Commerce, also said in an interview with Red Star News that the decision of the Standing Committee of the State Council to further promote large-scale equipment renewal and trade-in of consumer goods is undoubtedly a new kinetic energy for China’s economic development and a key means to promote the development level of manufacturing industry and improve the quality of consumer products.

　　Bai Ming said that by reading the contents of this regular meeting of the State Council, it can be seen that in the process of supporting large-scale equipment renewal and trade-in policies and measures for consumer goods, the "where does the money come from" has been solved — — Issue ultra-long-term special government bonds and "where is the money going" — — It is used for large-scale equipment updating and consumer goods trade-in.

　　Expand the scope of support to

　　Energy and electricity, old elevators and other fields.

　　In March this year, the State Council issued the Action Plan for Promoting Large-scale Equipment Renewal and Trade-in of Consumer Goods, which defined 20 key tasks in five aspects, and proposed that by 2027, the scale of equipment investment in industries, agriculture, construction, transportation, education, cultural tourism, medical care and other fields will increase by more than 25% compared with 2023.

　　The reporter noted that this meeting of the National People’s Congress pointed out that the support methods for equipment renewal projects should be optimized, and the scope of support should be extended to equipment renewal in the fields of energy and electricity, old elevators, and energy conservation, carbon reduction and safety transformation in key industries, so as to lower the declaration threshold and simplify the approval process.

　　In addition, the meeting also pointed out that we should support the scrapping and updating of old operating ships and trucks, raise the subsidy standards for agricultural machinery and new energy buses, and increase the financial discount ratio of equipment renewal loans. Support local governments to enhance the trade-in ability of consumer goods, increase subsidies for scrapping and upgrading automobiles and replacing old household appliances, and implement financial support policies for recycling and processing waste electrical and electronic products.

　　In this regard, Su Jian said that the Standing Committee of the National People’s Congress decided to optimize the support methods for equipment renewal projects, and expand the scope of support to equipment renewal in energy and electricity, old elevators and other fields, as well as energy saving, carbon reduction and safety transformation in key industries, indicating that under the current economic situation, strong measures must be introduced to stabilize the economic situation and stimulate economic growth.

　　Su Jian believes that the central government has a strong desire to promote economic growth, and is willing to support economic growth by issuing more government bonds, hoping to upgrade the production technology level of enterprises and improve the development level of the whole industry and the quality of life of the people through equipment renewal and trade-in.

　　Expert advice:

　　We should improve the efficiency of capital utilization as much as possible.

　　Bai Ming suggested that in the process of policy implementation, it is necessary to improve the efficiency of capital utilization as much as possible, and try to choose projects with high technology content that can drive an industry or even drive the development of the industrial chain, so that large-scale equipment renewal and trade-in of consumer goods can really drive economic growth and effectively improve people’s living standards, instead of blindly going to projects in the name of policies, resulting in derivative problems such as waste of funds and resources and overcapacity.

　　"Under the current economic situation, this policy promulgated by the National People’s Congress can be said to be an important starting point for China to stimulate the economy. We need to wait and see its progress and achievements." Bai Ming said.

　　Su Jian also believes that this regular meeting of the National People’s Congress has pointed out that the source of funds is the issuance of government bonds. In the process of policy implementation, it is necessary to ensure that funds can be used for related projects in a timely and sufficient manner, and at the same time, the buyers should have enough funds and confidence to complete equipment renewal and trade-in.

　　"Taking the trade-in of consumer goods as an example, while providing financial subsidies, more measures should be taken to mobilize consumers’ willingness to change, so as to ensure that the policy can finally be transformed into tangible economic growth results." Su Jian said.

　　Red Star journalist Qi Biao reports from Beijing.