The trade-in policy has entered a phase of intensive performance evaluation after 62.5 billion yuan in the third batch of ultra-long-term special treasury bond funds was allocated to provinces. Ministry of Commerce data shows that in the first half of 2026, consumer goods trade-in programs collectively drove related product sales to 1.1 trillion yuan, benefiting 150 million people. This includes 3.707 million vehicles, 63.266 million home appliances, and 79.098 million digital and smart products traded in or newly purchased.

With the peak consumption season approaching, regions are accelerating subsidy fund reviews and disbursements while optimizing application processes and old-product recycling networks. In Hubei, a series of home appliance and digital product promotions will run from late August through October 8, spanning the back-to-school season, Mid-Autumn Festival, and National Day. The policy stacks brand discounts, mall promotions, and financial interest subsidies on top of the national 15% trade-in subsidy. Qinghai expanded its subsidy categories by four items in a mid-August announcement and adjusted offline coupon redemption times. Gansu included six appliance types—refrigerators, washing machines, TVs, and air conditioners—under its subsidy program, offering 15% off final sale prices with a cap of 1,500 yuan per unit.

Zhao Yunjiao, a researcher at China Chengxin Credit Ratings' research and development department, noted that the trade-in policy has played a pivotal role in driving consumption upgrades and green transformation, with efficient subsidy disbursement being central to maximizing policy impact.

Consumer scenario innovation has emerged as a hallmark of this policy round, according to reports from local commerce departments. Guangdong has implemented unified subsidy standards for automobiles, home appliances, digital products, and smart devices, while adding six locally subsidized categories: smart locks, smart printers, smart displays, smart toilets, elderly-friendly respiratory assistive devices, and digital cameras. Eleven cities, including Guangzhou, Zhuhai, and Foshan, have already launched these local subsidy programs. As a national pilot city for new consumption formats, models, and scenarios, Beijing has deployed an initial 200 million yuan in pilot funds to spur market innovation. The Jiuzhou Fengwu Shizhangting store in the Summer Palace, for example, has created a five-in-one consumption model combining tourism, intangible cultural heritage experiences, time-honored brand cuisine, specialty cultural products, and branded beverages. The store integrates traditional heritage projects like cloisonné, inner painting, and sugar figurine making, aggregates Beijing's time-honored brand resources, and launched national-style co-branded products, revitalizing traditional culture and heritage brands for younger audiences. This initiative received 1 million yuan in funding support.

A Beijing Commerce Bureau official responsible for consumption promotion stated that since the pilot policy took effect, the capital's consumer market has seen an influx of new formats, business models, and scenarios, achieving a comprehensive upgrade in consumption capacity and quality.

Beyond scenario innovation, policy dividends are translating into tangible benefits for consumers. Zhao Xiaoting, a resident of Beijing's Chaoyang District, purchased an energy-efficient water heater at a Haier store, saving over 1,000 yuan through stacked discounts. On JD.com, a Haier 60L electric water heater costs just 357.93 yuan after combining national and trade-in subsidies. At offline retailers like Suning, foot traffic has risen 70% and overall sales are up 81% since the national subsidy launched, with energy-efficient appliances accounting for 92% of sales and AI-powered appliances exceeding 60%.

Yang Mu, head of the Ministry of Commerce's market operations and consumption promotion department, stated at a July 23 press conference that the trade-in policy's leverage ratio has improved from 1:7.8 last year to 1:10.3 currently, generating over 1.25 trillion yuan in sales and reaching 169 million beneficiaries. On the policy supply side, 187.5 billion yuan of this year's 250 billion yuan in ultra-long-term special treasury bonds has been allocated across three batches, and the personal consumption loan interest subsidy program has been extended through the end of 2026, with the dual tools of subsidies and interest subsidies continuing to drive momentum. The fourth batch of 62.5 billion yuan is scheduled to arrive around National Day, precisely aligning with the traditional golden September-silver October season and Double 11 e-commerce promotions.

Qi Yunlan, a researcher at the State Council Development Research Center's market economy institute, has noted that the trade-in program's shift from scale expansion to efficiency improvement signals a broader transition in consumption policy from blanket stimulus to targeted activation. Looking ahead, the trade-in policy is expected to evolve from a short-term tool for expanding domestic demand into a normalized, institutionalized mechanism for long-term consumption growth.