Stimulus measures to be enhanced

China will ramp up efforts to drive large-scale equipment upgrades and trade-in deals for consumer goods, with plans for strengthened supervision of the funds and measures to stimulate consumer spending, China's top economic regulator said on Tuesday.

Li Chao, a spokeswoman for the National Development and Reform Commission, said the next phase will see strengthened full-chain supervision of funding, ensuring that projects swiftly deliver tangible outcomes. Authorities will also crack down on market malpractices, such as deceptive pricing tactics like "raising prices before applying discounts" and false promotions.

"We will conduct evaluations to strengthen support for policies aimed at driving equipment upgrades and trade-in deals for consumer goods, summarizing and extending successful experiences and practices," Li said at a news conference in Beijing on Tuesday.

"Meanwhile, we will study and propose new policy measures to further increase support and expand the scope of the policies, which will be publicly announced in due course after completing the necessary procedures," she added. "The goal is to continue using the policies to benefit the public, enhance corporate profits and drive economic improvement."

China's accelerated push for driving large-scale equipment upgrades and promoting trade-in deals for consumer goods is paying off, with significant growth in consumer spending on key goods like home appliances and accelerated development in industrial upgrading, providing a solid base for the country's continued economic recovery, said officials and experts.

In October, sales of home appliances — also known as white goods — and audiovisual equipment jumped nearly 40 percent year-on-year, the NDRC said.

Li said the policies are designed to stimulate economic recovery from both the supply and demand sides, as businesses are encouraged to upgrade their products to meet evolving consumer needs, while trade-in incentives boost consumer spending.

The approach is yielding results. In the first 10 months, investment in purchases of equipment and tools rose 16.1 percent year-on-year, contributing over 60 percent to overall investment growth.

The National Bureau of Statistics said retail sales, a key measure of consumer spending, grew 4.8 percent year-on-year in October, up from 3.2 percent in September.

"Thanks to policymakers' cash-for-clunkers program funded by 150 billion yuan ($21 billion) in ultra-long-term government bonds, retail sales growth jumped in October," said Lu Ting, chief China economist at Nomura.

As the trade-in program continues to boost sales of cars and white goods, his team expects retail sales growth to remain elevated over the rest of this year, he added.

Zhou Maohua, a researcher at China Everbright Bank, said he believes China will likely register around its 5 percent annual economic growth target, buoyed by a suite of countercyclical policies introduced since September.

"The measures have boosted market expectations, with consumption and investment showing signs of strengthening in the year's final stretch," Zhou said. "Robust demand management policies are aligning domestic demand with stable supply, positioning the economy for a balanced recovery."

Looking ahead, Li from the NDRC said China's economy is expected to sustain its recovery momentum during the November-December period, building on the upward trend seen since October, as existing policy measures take effect and new policies are implemented.

"We are working collaboratively with all sectors to ensure the annual growth goal is met," she said.

Li added that China's economic outlook for 2025 remains optimistic, supported by robust structural factors and favorable market conditions. Key among these are over 300 major reform initiatives set in motion at the third plenary session of the 20th Communist Party of China Central Committee, which will boost the internal driving forces and invigorate innovation and vitality.

Meanwhile, she said China's vast domestic market continues to be a significant asset, with substantial untapped demand. And policymakers still have ample policy space and policy tools to maintain economic stability.