BEIJING (Reuters) - Chinese companies will subsidies purchases of kitchen appliances from Friday in a trial aimed at boosting domestic consumption, an industry body said, the latest step to lift China’s economy which is mired in its worst slowdown in three years.
Shoppers buying home appliances including microwave ovens, electric cookers, electric fans and extraction fans will be subsidized by as much as 10 percent of the sales price, the China Household Electrical Appliances Association said.
“The scheme is aimed at benefitting consumers and stimulating market demand,” a statement published on the association’s website (www.cheaa.org) said on Thursday.
The subsidies will come from funds set up by producers and retailers of kitchen appliances, and will be reviewed in 40 days, the statement said. GOME Electrical Appliances (0493.HK) and Dazhong Electronics are among companies involved in the scheme.
The industry body did not say how much the pilot scheme would cost or where it would be implemented.
The private-sector plan mirrors one run by the government, which has earmarked 26.5 billion yuan ($4.17 billion) in subsidies for energy-saving home appliances.
In the aftermath of the global financial crisis in late 2008, Beijing rolled out policies to boost home appliance sales. Those schemes ended in 2011, denting sales and creating a buildup in inventory of air conditioners.
Growth in the world’s second-largest economy was driven by domestic spending in the first-half of the year. But retail spending was still not strong enough, leaving China’s economic growth at a three-year low of 7.6 percent in the second quarter.
Reporting By Xiaoyi Shao and Koh Gui Qing; Editing by Jeremy Laurence