Rural home appliance sales grow under national subsidy program

BEIJING, Jan. 29 (Chinese media) -- Home appliance sales in China's countryside

has been stirred up as the government offered subsidies to rural buyers of those

products to lift domestic consumption, the People's Daily reported Thursday.

In the first 20 days of January, Chinese farmers bought more than 160,000

items of home appliances on government subsidies, 90 percent of the total in

December, the newspaper said, citing Ministry of Commerce (MOC) sources.

"The expansion of the subsidy program on rural purchase of home appliances

has magnified the purchasing power of rural residents by seven times and

gradually accelerated sales since the beginning of this year," the MOC was

quoted as saying.

China began a trial program in December 2007 to grant a 13 percent subsidy

to farmers who buy color TVs, refrigerators, mobile phones, washing machines and

freezers.

Since then, rural sales of color TVs, refrigerators and mobile phones in

three pilot provinces of Shandong, Henan and Sichuan has grown in annual rates

more than 30 percentage points higher than the national average level, according

to the report.

The MOC didn't give further details on the numbers. Phone calls to the

ministry's press office were unanswered on Thursday.

In a move to boost rural consumption, China has decided to rollout the

subsidy program nationwide from 12 provinces, or less than half of the total, at

present, starting from Feb. 1.

Moreover, farmers who buy motorcycles, computers, water heaters and air

conditioners will also get subsidies.

China expands rural home appliance subsidies

BEIJING, Dec. 31 (Chinese media) -- China will expand subsidies for farmers' purchase of home appliances nationwide from Feb. 1 to boost consumption, said the General Office of the State Council on Wednesday.

At present, subsidies only apply to rural residents in 12 provinces, or less than half of the total. Full story