China’s digital product sales hit $20 billion in four months due to government subsidies

The Chinese government’s subsidies geared toward boosting home consumption have led to a surge in the sales of digital merchandise like smartphones, tablets, and smartwatches, producing about $20 billion in simply four months, in accordance to the Ministry of Commerce.As of Thursday, over 48 million customers participated in the government’s digital product subsidy scheme, buying a complete of 51.48 million merchandise and driving roughly 143.3 billion yuan (round $19.9 billion) in sales, the ministry reported on Friday, as reported PTI.Between January and April, retail sales of communication home equipment rose 25.4 per cent in contrast to the identical interval final yr, marking the quickest development amongst 16 main client items classes, knowledge from the ministry confirmed.In January, China launched new measures to develop the scope of its client items trade-in programme. The government elevated the variety of residence equipment classes eligible for subsidies from eight in 2024 to 12 in 2025.Large-scale gear upgrades and client items trade-in initiatives have been launched in March 2024 and revamped earlier this yr to enhance home demand and spur financial development.Under the subsidy programme, customers buying smartphones, tablets, smartwatches, or wristbands priced beneath 6,000 yuan ($850) are eligible for a subsidy protecting 15 per cent of the sales worth, up to a most of 500 yuan ($71) per merchandise. The programme is offered for each home and international manufacturers.The Chinese government has been encouraging efforts to improve home demand to strengthen the financial system and counter exterior dangers amid rising commerce tensions with the US.These subsidies have led thousands and thousands of Chinese customers to improve their units, benefiting each home and international manufacturers. According to reviews from official media, the government additionally presents a subsidy of 20,000 yuan (round $2,850) for electrical autos.The Ministry of Commerce famous that the digital product subsidy insurance policies have contributed to a market shift in direction of higher-end merchandise.Third-party knowledge revealed that the sales quantity of smartphones priced between 2,000 yuan ($278) and 4,000 yuan ($570) elevated by 13 per cent year-on-year in the course of the first four months of 2025, whereas sales of smartphones in the 4,000 to 6,000 yuan ($850) vary surged by 43 per cent.