Economy

China continues its subsidies for rural home appliance buyers

(Xinhua)
Updated: 2010-12-16 10:06

BEIJING - The Chinese government signed contracts with bid-winning home appliance manufacturing enterprises Wednesday, paving the way for offering subsidies to rural home appliance buyers next year.

According to the contracts, 15,290 models of televisions, refrigerators, washing machines, mobile phones, electromagnetic cookers, microwave ovens, air conditioners, computers and water heaters can enjoy government subsidies for their sales in the countryside.

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The Chinese government kept unchanged the price ceilings and subsidy limits for home appliance sales in rural areas from the level of 2010.

According to the current rural subsidy program, the price ceilings are 7,000 yuan ($1,051) for each television set, 4,000 yuan for a refrigerator, 2,000 yuan for a mobile phone, 3,500 yuan for a washing machine, 3,500 yuan for a split air conditioner and 6,000 yuan for a packaged air conditioner.

Under the program, Chinese farmers can receive subsidies equal to 13 percent of the price of the listed home appliances.

China launched the subsidy program in February 2009 to stimulate rural consumption and buoy the nation's economy amid the global economic downturn.

In the first 11 months of this year, the subsidy program drove rural purchases of home appliances to 67.3 million units worth 150.41 billion yuan, up 180 percent year-on-year, according to the Ministry of Commerce.