And worked. More than expected. While the subsidy only covers 13% of total price, rural consumption increased.... a 510%! But let's discover how works.
- Main points of China's subsidy
- Subsidy: Chinese government subsidy covers 13 percent of the price of some home appliances.
- Home appliances covered: Television sets, mobile phones, computers, air conditioners, water heaters, washing machines and kitchen appliances as micro-wave ovens, ovens and refrigerators.
- Government, seeing the exit of this operation, added another six items: Electric bikes, DVD players, smoke exhaust ventilators, gas stoves, pressure cookers and electric cookers.subsidy.
- Between January-April period, Chinese bought 20.84 millions sets of subsidized home appliances. 370% more than the same period at 2009.
- In April alone, 4.8 millions sets were sold, 170% more than 2009 April.
- Chinese economy ministry's website said total sales of subsidized appliances surged 510 percent year-on-year to 41.7 bn yuan ( €4.81 bn, $6.13 bn) during the period..
- Top sold appliances: Tv sets and refrigerators in January-April period totaled 3.2 bn yuan each. Computers 1 bn yuan, according to China's government.
This way, Chinese government increases sales, while Chinese rural areas families life quality multiplies and labor saving appliances give more time to do more productive work at factories, farms and offices, increasing the whole income of China.
Because labor saving appliances will free up workers to do more lucrative work at factories and in offices and increase the income of the country. No one wonders why Chinese economy is increasing.
China's economy grows nearly 12 percent
China oil demand 12.8% growth Share