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Beijing is betting on rice cookers and microwave ovens to boost the economy


The Chinese government has expanded the list of products people can trade in to get discounts of up to 20% on new products as the country tries to boost its ailing economy.

The list now includes items like microwave ovens, dishwashers, rice cookers and water purifiers.

State-backed trade-in schemes have already covered TVs, phones, tablets and smartwatches, as well as electric and hybrid vehicles.

The world’s second-largest economy faces several challenges, including weak consumer demand and a deepening housing crisis.

On Wednesday, officials said 81 billion yuan (£8.9 billion; $11 billion) was earmarked for the consumer goods exchange scheme this year.

China’s top economic planning body said the schemes, launched in March, had already had “visible effects”.

According to the country’s Ministry of Commerce, the policy has boosted sales of large items such as home appliances and cars.

But some economists have questioned whether these programs will be enough to significantly increase consumer spending.

“The approach has had mixed success so far,” said Harry Murphy Cruise, head of the China economy at Moody’s Analytics.

“While it supported sales of some listed goods, such as cars and appliances, it did not spur an overall increase in consumption.”

In recent months, China has pushed ahead with additional measures to support its domestic economy as the country’s exporters face mounting challenges.

In December, a key meeting of Chinese leaders stressed the need for “robust” efforts to boost consumer spending.

This comes after President-elect Donald Trump, who is due to return to the White House this month, threatened to impose 60 percent tariffs on Chinese-made products.

China is due next week to release data on economic growth for 2024, which Beijing has said it expects to be around 5%.



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