Kathmandu— In Nanning, Guangxi Zhuang Autonomous Region, Zhu Chengyi and his wife Li Lan upgraded their decade-old air conditioner after being urged by their daughter. The new inverter-equipped unit allows them to control the temperature via voice commands or smartphone apps, reflecting a broader trend across China as an accelerated trade-in program drives consumers towards more efficient appliances.

Government Incentives Drive Upgrade

China’s national trade-in program, funded through ultra-long special treasury bonds, has generated significant sales and benefited millions of consumers. The initiative aims to narrow the scope of subsidies to steer demand towards greener products by offering a 15 percent discount on top-tier Grade 1 efficiency appliances, capped at 1,500 yuan per unit.

According to data from the National Bureau of Statistics (NBS), total retail sales of consumer goods reached 24.87 trillion yuan in the first half of 2026, up 1.3 percent year on year. The trade-in program alone contributed to a substantial portion of this growth.

Retailers See Stronger Demand

At Suning’s flagship store in Nanning, manager Huang Bentao reported increased foot traffic compared to the previous year, with customers showing particular interest in models featuring voice control and remote monitoring options. “Customers are increasingly asking about smart features and energy savings,” he said.

Dou Zhihong, Midea’s general agent for Guangxi, echoed this sentiment, noting that buyers are more focused on Grade 1 ratings and smart functions. He observed a rise in average transaction values as customers opt for premium units over basic replacements.

Impact Beyond Borders

The momentum of China’s trade-in program is not limited to domestic markets. Customs data reveal that Chinese air-conditioner exports to the European Union reached a record high of 3.76 billion U.S. dollars in the first half of 2026, marking a year-on-year increase of 43.2 percent. Portable air conditioners, ideal for rental properties and older housing stock, saw their market share rise from 27 percent to 41 percent.

(With inputs from Xinhua)

Originally published on abcnews.com.np.