China’s retail market showed renewed signs of life in the first two months of 2025, as consumption coupons and other stimulus measures led buyers to trade in old appliances and dated furniture for newer items.

Total retail sales of consumer goods reached a combined 8.37 trillion yuan ($1.15 trillion) in January and February, a 4% year-over-year increase, state broadcaster CCTV reported Sunday. Much of this growth was driven by spending on furniture and household appliances, which were up 11.7% and 10.9% year over year, respectively.

Boosting consumption has become a point of emphasis for Chinese policymakers in recent years, as the country navigates what top leaders have called an “uncertain” global landscape.

In March, the State Council — China’s cabinet — unveiled a 30-point consumption “action plan” aimed at pushing consumers to open their pocketbooks and spend. Although light on details, the plan orders local governments to address common frustrations like a lack of paid leave and high childcare costs.

It also calls for expanding local trade-in subsidies for big-ticket items like appliances and home electronics. Launched last year and expanded in early 2025, the trade-in subsidies offer discounts on 12 categories of common household electronics and furniture including air conditioners, kitchen appliances, and cellphones.

Consumers have purchased nearly 90 million new household appliances using the trade-in subsidies since last August, according to the Ministry of Commerce.

More than 27.5 million of those purchases came in the first two months of 2025, accounting for 93 billion yuan in sales. At the annual “Two Sessions” legislative meetings held in early March, Chinese Premier Li Qiang announced 300 billion yuan in long-term special national bonds would be allocated to support the trade-in program.

The January expansion of the subsidy plan, which added discounts on smaller items like rice cookers and cellphones, may have helped drive consumer interest. Shanghai resident Chen Hui told Sixth Tone that she bought an Apple Watch after hearing it was eligible for a 15% discount. She has since bought a robotic vacuum cleaner, and now plans to trade in her refrigerator and washing machine.

“It’s encouraged me to try new things,” Chen said.

(Header image: Customers at a home appliances trade-in event in Qingzhou, Shandong province, November 2024. VCG)