China’s push to boost consumption: the impact of ‘trade-in for new’ policies

China’s "trade-in for new" policy is making waves, with applications to swap used cars for new ones surpassing 5 million this year. By encouraging consumers to buy sooner, this initiative is helping to boost spending in key sectors like automobiles and home appliances and could drive retail growth by up to 1.8% in 2024, according to some projections. But how does the policy work, and why has it resonated so strongly with consumers? More importantly, what does it mean for China’s broader consumer market and its economic goals? In this episode, we dive into these questions with Dou Hongyu to explore the ripple effects of this growing trend.