The ongoing rollout of large-scale consumer trade-in policies is fueling rapid expansion in the green and smart consumption market. Data from the Ministry of Commerce's Consumer Promotion Department reveals that the trade-in program is driving growth in green and intelligent spending, with new energy passenger vehicle retail penetration reaching 65.1% in July, setting a fresh record high.
Ministry of Commerce big data monitoring shows that in July, sales of embodied intelligent robots on key platforms surged 95.1% year-on-year, exoskeleton assist devices climbed 39.5%, action cameras rose 24.7%, and robot vacuums increased 19.4%, fully demonstrating the growth potential of emerging smart consumer categories. Notably, this smart consumption surge is not confined to first- and second-tier cities, as lower-tier markets are also becoming a significant source of incremental growth. From January to July, rural retail sales grew 2.4% year-on-year, outpacing urban areas by 1.3 percentage points, while county and township retail sales accounted for 39.1% of total social retail sales.
An Guangyong, an expert at the Credit Management Committee of the All-China Federation of M&A Associations, noted that these figures reflect a structural shift in China's consumer market: transitioning from primarily meeting basic living needs to placing greater emphasis on technological experience, green principles, and personalized demands. The rising penetration of new energy vehicles indicates that green consumption has moved beyond the policy-driven stage into broad public acceptance. Meanwhile, growth in embodied intelligent robots, exoskeletons, and action cameras shows that AI and smart hardware are moving from laboratories and professional settings into everyday consumer life.
On December 30, 2025, the National Development and Reform Commission and the Ministry of Finance issued a notice on implementing large-scale equipment upgrades and consumer trade-in policies in 2026, clarifying the support scope, subsidy standards, and work requirements for the "two new" policies. For consumer trade-ins, the program will continue subsidies for vehicle scrappage and replacement, as well as home appliance trade-ins, focusing on six categories: refrigerators, washing machines, televisions, air conditioners, computers, and water heaters. Additionally, the digital product purchase subsidy has been expanded to cover digital and smart products, including smartphones, tablets, smartwatches (and bands), smart glasses, and smart home devices (including age-friendly products).
According to An Guangyong, China's consumption upgrade is entering a new phase of "intelligence and green integration," characterized more by structural advancement than synchronized high-speed growth across all sectors. On one hand, essential consumer goods continue to play a stabilizing role, providing foundational market support. On the other, emerging categories such as new energy vehicles, smart homes, and AI hardware are becoming new growth drivers.
Liang Zhenpeng, a seasoned industry economist, believes that consumption upgrade has now entered an "AI plus green consumption" era. This stage is no longer about simple price or brand elevation but rather a triple enhancement of product quality, technological content, and environmental responsibility. AI technology is rapidly materializing into consumer products, while green consumption has become a shared policy and market direction. Together, these forces signal a transition from quantitative to qualitative change, ushering in a period of structural optimization and growth momentum transformation.
The iterative upgrade of consumption structures is also pushing the market from "product competition" to "ecosystem competition." An Guangyong explained that corporate supply models will shift from large-scale standardized production toward flexible manufacturing that emphasizes intelligence, personalization, and continuous service. Furthermore, new consumer products will drive industrial chain upgrades—for example, new energy vehicles are boosting the development of batteries, chips, and charging networks, while smart homes are advancing sensor technology, AI algorithms, and data service infrastructure.
"The domestic consumer market will form a diversified supply pattern where traditional essential goods provide stable support, emerging smart and green products lead growth, and service-oriented consumption integrates across sectors, lifting both the scale and quality of domestic demand," Liang Zhenpeng further stated.
An Guangyong emphasized that the overall consumption environment still faces certain pressures, with consumers increasingly prioritizing cost-effectiveness and practical value. As such, the growth in smart consumption is not simply an expansion of premium spending but rather reflects "inclusive innovation consumption" driven by technological maturity and declining costs.