China bets on kitchen appliances to boost economy

The Chinese government has expanded a list of products people can trade in to get up to 20% off new products, as the country tries to boost its flagging economy.

The list now includes items like microwave oven, dishwasher, rice cooker and water purifier.

State-backed trade-in schemes already cover televisions, phones, tablets and smart watches, as well as electric and hybrid vehicles.

The world’s second-largest economy faces a number of challenges, including weak consumer demand and a deepening asset crisis.

On Wednesday, officials said 81 billion yuan (£8.9 billion; $11 billion) was earmarked this year for a consumer goods trade-in scheme.

China’s top economic planning body said the plans launched in March have already made a “visible impact.”

According to the country’s commerce ministry, the policies have boosted sales of large items such as home appliances and cars.

But some economists have questioned whether these plans will be enough to significantly increase consumer consumption.

“This approach has had mixed success so far,” said Harry Murphy Cruz, head of China economics at Moody’s Analytics.

“Although this has supported sales of some listed goods such as cars and appliances, it has not led to an overall increase in spending.”

In recent months, China has been pushing for more measures to support its domestic economy as the country’s exporters face increasing challenges.

In December, a key meeting of China’s leaders stressed the need for “vigorous” efforts to boost consumer spending.

This came as President-elect Donald Trump, who is scheduled to return to the White House this month, threatened to impose 60% tariffs on Chinese-made products.

China is due to announce its 2024 economic growth figures next week, which Beijing has said it expects will be around 5%.