China boosts subsidies for car, appliance buyers

SHANGHAI (AP) — China will subsidize purchases of cars and home appliances to replace older models, expanding a program first introduced in rural areas to major cities, the government said Tuesday in its latest move to stimulate the economy.

The decision by an executive meeting of the State Council is meant to pump up China’s domestic demand, supporting domestic industries hit by a slump in demand for exports and encouraging use of more energy-efficient, less polluting cars and appliances, said a statement on the government’s Web site.

Areas qualifying for the “swapping old for new” subsidies, as they are dubbed, include Beijing, Shanghai, Tianjin and several provinces in China’s affluent coastal regions. The earlier program focused mainly on boosting sales of small vehicles and appliances in the rural areas.

The plans were announced a day after the government outlined plans for revitalizing and restructuring China’s light industries and its often loss-making petroleum refining sector.

Those plans, issued by the State Council, or Cabinet, late Monday are meant to create about 3 million jobs.

AP