Ministry of Finance: The central government has pre-allocated 81 billion yuan for the 2025 consumption upgrade fund to support local governments in ensuring the continuity of policy implementation

According to the Zhitong Finance APP, on the morning of January 8, the State Council Information Office held a regular press conference on State Council policies. Fu Jinling, Director of the Economic Construction Department of the Ministry of Finance, mentioned that in 2025, the Ministry of Finance will further optimize fund allocation. For the old-for-new fund for consumer goods, the Ministry of Finance will work with the National Development and Reform Commission to tilt towards regions with better performance based on the previous relevant allocation factors, following the principle of "incentive compatibility," according to the implementation of the old-for-new policy and funds for consumer goods in 2024. Recently, the central government has pre-allocated 81 billion yuan for the old-for-new fund for consumer goods in 2025 to support localities in ensuring the continuity of policy implementation. Zhao Chenxin, Deputy Director of the National Development and Reform Commission, mentioned the expansion of support for the old-for-new policy for consumer goods. Fuel vehicles that meet the National IV emission standards will be included in the scope of scrapping and updating subsidies, and a unified maximum subsidy limit for automobile replacement and updates will be established nationwide. The number of home appliance products eligible for old-for-new subsidies will increase from 8 categories last year to 12 categories in 2025, with a maximum subsidy of 20% of the sales price for a single item. Considering the actual needs of households, the maximum subsidy for each consumer purchasing air conditioning products will increase from 1 item to 3 items, and there will also be new subsidies for mobile phones and other digital products in response to public expectations. In addition, there will be continued strong support for the replacement of home decoration consumer goods and the old-for-new policy for electric bicycles. Peng Lifeng, Director of the Credit Market Department of the People's Bank of China, stated that next, the People's Bank will thoroughly implement the decisions and deployments of the Central Economic Work Conference, continue to provide financial support for large-scale equipment updates in collaboration with relevant departments, better leverage the role of cross-departmental working mechanisms, strengthen cooperation with the finance sector, further optimize the relending process, support banks in improving service efficiency, expand the scale of equipment update loans, reduce corporate financing costs, and stimulate the demand for equipment updates from business entities. The transcript is as follows: Shou Xiaoli, Director of the News Bureau and Spokesperson of the State Council Information Office: Ladies and gentlemen, good morning! Welcome to the regular press conference on State Council policies. Today, we have invited Mr. Zhao Chenxin, Deputy Director of the National Development and Reform Commission, to introduce the implementation of the "Two New" policies and answer your questions of concern. Also present at today's press conference are: Mr. Liu Dechun, Director of the Resource Conservation and Environmental Protection Department of the National Development and Reform Commission; Mr. Fu Jinling, Director of the Economic Construction Department of the Ministry of Finance; Mr. Li Gang, Director of the Market Operation and Consumption Promotion Department of the Ministry of Commerce; Mr. Peng Lifeng, Director of the Credit Market Department of the People's Bank of China; and Mr. Liu Hongsheng, Director of the Standard Technology Management Department of the State Administration for Market Regulation. Now, let's first invite Mr. Zhao Chenxin to give an introduction. Zhao Chenxin, Deputy Director of the National Development and Reform Commission: Dear journalist friends, good morning! I am pleased to participate in today's press conference with several colleagues from relevant ministries. General Secretary Xi Jinping attaches great importance to the "Two New" work and emphasized at the Central Economic Work Conference the need to increase the issuance of ultra-long special government bonds and to strengthen the implementation of the "Two New" policies. The National Development and Reform Commission will work with localities and departments to carefully summarize the experiences and practices of 2024 and ensure the implementation of the work in 2025. Here, I would like to review the implementation of the "Two New" work in 2024, which can be summarized as having four "obvious effects." First, the effect of stimulating consumer vitality is significant. In 2024, the national automobile scrapping and replacement exceeded 6.5 million units, and the domestic market penetration rate of new energy passenger vehicles has been over 50% for seven consecutive months since June. The annual domestic retail volume reached 11 million units. By the end of July 2024, after the strong support for the "Two New" policy was launched, the sales of household appliances and audio-visual equipment in August turned from a year-on-year decline of 2.4% in the previous month to a year-on-year increase of 3.4%. This high growth trend has continued, with year-on-year increases of 20.5%, 39.2%, and 22.2% in September to November, respectively. The effect of stimulating consumer vitality is very evident. Second, the effect of driving investment growth is significant. In 2024, among the more than 4,600 equipment renewal projects supported by ultra-long-term special government bonds, the renewal of industrial, energy-consuming, energy power, and transportation equipment exceeded 2 million units (sets). We preliminarily estimate that under the comprehensive drive of the "Two New" policy, the total amount of equipment renewal in key national fields could exceed 20 million units (sets), effectively driving investment in related fields of equipment and tools. Third, the effect of promoting industrial upgrading is significant. The "Two New" policy has driven rapid growth in production in the equipment manufacturing and consumer goods industries, with the added value of the equipment manufacturing industry increasing by 7.6% year-on-year in November 2024, contributing nearly 50% to the growth of industrial added value above a designated size; the added value of ship and related device manufacturing, smart consumer device manufacturing, and lithium-ion battery manufacturing increased by 20.1%, 10.7%, and 8.8% year-on-year, respectively. Fourth, the effect of supporting green transformation is significant. The "Two New" standard enhancement action has released 168 important standards related to energy consumption, pollutant emissions, etc. In 2024, the number of new intelligent community waste recycling facilities nationwide reached over 11,000, and the sales proportion of Level 1 energy-efficient appliances reached 90%. Based on the physical workload and energy-saving and carbon-reduction effects, we have estimated that the energy savings generated by the implementation of the "Two New" policy in 2024 is about 28 million tons of standard coal, reducing carbon dioxide emissions by about 73 million tons. The four "significant effects" fully demonstrate the important role and remarkable effects of the implementation of the "Two New" policy in expanding effective investment, boosting consumer demand, promoting green transformation, and improving social welfare. Continuing the good practices from 2024, in 2025, we will strengthen and expand the implementation of the "Two New" policy. The overall consideration is to increase the scale of funding, expand the scope of support, optimize the implementation mechanism, amplify the leverage effect, and deepen the promotion of the "Four Major Actions." This year, the document for strengthening and expanding the implementation of the "Two New" policy has been officially issued with the approval of the State Council at the same time as our press conference. Here, I would like to introduce the main content: First, strengthen the promotion of equipment renewal. Continue to support the renewal of industrial, energy-consuming equipment, energy power, transportation, logistics, environmental infrastructure, education, cultural tourism, medical care, old elevators, and other equipment, and further include fields with high potential for renewal such as electronic information, safety production, and facility agriculture in the subsidy scope. We will specifically allocate a portion of funds to strengthen the implementation of loan interest subsidies for equipment renewal, amplify the leverage effect of funds, and reduce the financing costs for operating entities in equipment renewal. Further increase the subsidy standards for the scrapping and renewal of agricultural machinery, new energy buses, and power batteries Second, expand support for the replacement of consumer goods. Include fuel vehicles that meet the National IV emission standards in the scope of scrapping and updating subsidies, and unify the maximum subsidy limit for automobile replacement and updates nationwide. The number of home appliance products eligible for the old-for-new subsidy will increase from 8 categories last year to 12 categories by 2025, with a maximum subsidy of 20% of the sales price for each item. Considering the actual needs of households, we will increase the maximum subsidy for each consumer purchasing air conditioning products from 1 item to 3 items, and in response to public expectations, we will also implement subsidies for the purchase of new digital products such as mobile phones. In addition, we will continue to strongly support the replacement of home decoration consumer goods and the old-for-new program for electric bicycles. Third, accelerate the improvement of recycling and circular economy levels. Continue to support the construction of high-level recycling projects. Regulate the second-hand goods trading market and accelerate the upgrading of the remanufacturing industry. The central government will continue to allocate special funds to support the recycling and processing of waste electrical and electronic products, promoting the healthy development of the industry. Accelerate the implementation of the reverse invoicing system. Many consumers may not be familiar with what "reverse invoicing" means. We have received information from certain channels, and here I will provide a brief introduction to "reverse invoicing." "Reverse invoicing" is an institutional innovation in the field of circular economy since the implementation of the "Two New" policy. In the past, when individuals sold waste products to recycling companies, the recycling companies paid the money but could not obtain a value-added tax invoice from individuals, which led to the inability of recycling companies to enjoy input tax deductions. After the implementation of "reverse invoicing," recycling companies can issue invoices to individuals, thus achieving value-added tax input deductions, which reduces the tax burden on recycling companies. Of course, while making this innovation, we also emphasize the need to strengthen supervision and regulate the tax order in the resource recycling and utilization industry. There are other aspects to improving the level of recycling, including implementing special actions to promote the application of recycled materials and supporting production enterprises in the automotive and electrical and electronic products sectors to increase the proportion of recycled materials used. Fourth, fully leverage the role of standards enhancement. Benchmark against international advanced levels, improve key industry and important equipment, technology, energy consumption, and emission indicators. By the end of 2025, we will work with various departments to complete the task of formulating and revising all 294 national standards in the "Two New" field on schedule. At the same time, strengthen the supervision of standard implementation and enhance the enforceability and binding force of mandatory standards. Continue to expand the scope of energy efficiency and water efficiency labeling, and organize the selection of "leading" products and equipment in terms of energy efficiency and water efficiency. Promoting the specific implementation of the "Two New" work is a systematic project, and we will continue to improve the implementation mechanism of the "Two New" policy. In terms of the allocation of funds for the old-for-new program for consumer goods, the implementation in 2024 will comprehensively consider factors such as the number of permanent residents in various regions, regional GDP, and the ownership of automobiles and home appliances to determine the scale of fund allocation for each region. This year, the implementation of the old-for-new policy for consumer goods in 2024 will be considered as an additional factor for fund allocation, further optimizing the distribution of funds, with the aim of favoring regions that perform well in 2024. In terms of organization and implementation, we will optimize the participation threshold for policies, support various business entities to participate in "Two New" activities equally, improve fund settlement efficiency, and reduce the financial pressure on enterprises. We will optimize the subsidy application process to minimize issues such as consumers having to repeatedly fill out information, ensuring that real financial benefits reach each consumer more conveniently Let me first introduce these situations, and later I am willing to answer questions of concern together with several colleagues. Thank you! Shou Xiaoli: Thank you, Deputy Director Zhao Chenxin, for the introduction. Now we will enter the Q&A session. Please announce your news organization before asking questions. Reporter from Hongxing News: The "two new" work, especially the large-scale equipment renewal policy, has a significant role in promoting industrial upgrading and accelerating green transformation. In addition to expanding the scope and raising standards, what comprehensive measures will be taken in 2025 to further support the equipment renewal across society? Thank you. Zhao Chenxin: Thank you for your question. I will let Director Liu Dechun answer this question. Director of the Department of Resource Conservation and Environmental Protection, National Development and Reform Commission, Liu Dechun: Promoting large-scale equipment renewal is crucial for China's industrial transformation and upgrading, as well as for green, low-carbon, and high-quality development. This not only benefits current economic growth but also supports long-term foundational strengthening. In 2025, based on the positive results achieved in 2024, we will further increase the scale of special long-term government bonds, enhance support efforts, enrich support methods, amplify leverage effects, and establish a long-term mechanism for large-scale equipment renewal. First, expand the scope and raise standards. In terms of "expanding the scope," we will include three areas: electronic information, safety production, and facility agriculture in the support scope of special long-term government bonds; support the scrapping and renewal of operational trucks that meet the National IV emission standards based on the National III emission standards; and increase the types of agricultural machinery eligible for scrapping and renewal subsidies, adding six types such as rice transplanters and field operation detection terminals. In terms of "raising standards," we will increase the subsidy standards for new energy city buses and power battery renewals, raising the average subsidy per vehicle from 60,000 yuan to 80,000 yuan; and increase the subsidy standards for the scrapping and renewal of cotton pickers, with the maximum subsidy per unit increasing by 20,000 yuan. Second, increase interest subsidies. For eligible operating entities' bank loan principal related to equipment renewal, on the basis of a 1.5 percentage point interest subsidy from the central government, the National Development and Reform Commission will arrange additional interest subsidies from special long-term government bonds to further amplify the leverage effect of funds and effectively reduce the financing costs for operating entities, especially small and medium-sized enterprises, for equipment renewal. At the same time, we will focus on improving the full-chain implementation mechanism for loan interest subsidy project applications, document reviews, list submissions, and fund disbursements, effectively enhancing the convenience for enterprises to access preferential policies. Third, optimize processes. On one hand, for equipment renewal projects supported by special long-term government bonds, we will continue to adopt a "local review, national re-examination" approach for screening and approval, simplifying the application and approval processes to effectively improve work efficiency. On the other hand, based on supporting major projects, we encourage capable localities to use industrial parks and industrial clusters as carriers to deploy and implement equipment renewal on a large scale, better stimulating the enthusiasm of parks and small and medium-sized enterprises. Fourth, tap into potential. We will benchmark against standards for technology, energy consumption, emissions, and safety, and organize localities to conduct in-depth assessments and diagnostics of existing equipment based on the guidance catalog for industrial structure adjustment and equipment elimination, clarifying equipment renewal target tasks by field and industry, and strengthening the regular reserve of projects. We will adhere to both incentives and constraints, legally and according to regulations eliminate backward and inefficient equipment, promote the replacement of existing equipment, better expand effective investment, and continuously increase the proportion of advanced production capacity. Thank you! First Financial Reporter: Promoting the replacement of old consumer goods with new ones not only enhances the quality of life for the public but also facilitates industrial upgrading. We would like to know, as the replacement of old consumer goods has come to an end in 2024, what achievements have been made? What measures do we have to achieve greater effectiveness in promoting the replacement of consumer goods in 2025? Thank you. Zhao Chenxin: Thank you for your question. I will let my colleagues from the Ministry of Commerce answer this. Li Gang, Director of the Market Operation and Consumption Promotion Department of the Ministry of Commerce: In 2024, the Ministry of Commerce deeply implemented the decisions and deployments of the Central Committee of the Communist Party of China and the State Council, working with various regions and relevant departments to solidly promote the replacement of old consumer goods with new ones, achieving positive results. Throughout the year, the number of scrapped and updated vehicles exceeded 2.9 million, with over 3.7 million vehicles replaced, driving automobile sales to exceed 920 billion yuan. More than 36 million consumers purchased over 56 million units of eight major categories of household appliances, driving sales of 240 billion yuan. The "renewal" of home decoration and kitchen and bathroom products drove the sales of nearly 60 million related products, with sales of about 120 billion yuan. The replacement of electric bicycles exceeded 1.38 million, driving new car sales of over 3.7 billion yuan. From the perspective of policy effectiveness, it can be summarized as "three promotions and one enhancement." First, it promoted consumption growth. Since the implementation of the policy, the enthusiasm of the public for replacement has surged, and sales of consumer goods in the automotive and home appliance sectors have improved. From January to November 2024, retail sales of passenger cars reached 20.257 million units, a year-on-year increase of 4.7%; retail sales of household appliances and audio-visual equipment in units above the designated size reached 918.9 billion yuan, a year-on-year increase of 9.6%, already surpassing the total level of 2023. Second, it promoted industrial upgrading. High-tech and high-efficiency products are favored, driving related industries to transform towards intelligence and high-end. In the replacement of old vehicles, the proportion of purchasing new energy vehicles exceeded 60%. In the replacement of old household appliances, the sales proportion of first-level energy efficiency products exceeded 90%, driving retail sales of high-efficiency and smart appliances to grow at double-digit rates for four consecutive months. In the "renewal" of home decoration and kitchen and bathroom products, nearly 10 million smart home products such as smart toilets, robotic vacuum cleaners, and smart locks were replaced. Third, it promoted green transformation. The replacement policy has driven the growth of scrapped vehicles and old household appliances recycling, and the recycling system for renewable resources has become more robust. In 2024, the recycling volume of scrapped vehicles reached 7.872 million, a year-on-year increase of 70.7%. Data from key enterprises contacted by the Ministry of Commerce shows that the recycling volume of old household appliances has achieved year-on-year growth for five consecutive months since July. In 2024, the All-China Federation of Supply and Marketing Cooperatives renovated and built more than 1,000 standardized recycling stations in major cities across the country, effectively supporting resource recycling and utilization. Fourth, it enhanced the quality of life. High-energy-consuming and unsafe consumer goods are being eliminated at an accelerated pace, and more environmentally friendly and safer high-quality durable consumer goods are entering residents' lives more quickly. Driven by the policy, over 6.6 million old vehicles were replaced with new energy vehicles or energy-saving vehicles, and over 1 million old electric bicycles were replaced with safer lead-acid battery-powered vehicles. The notice for the implementation of the "Two New" policy in 2025 has been issued, and the Ministry of Commerce will focus on ensuring the effective implementation of the replacement policy for consumer goods. First, we will introduce detailed measures to ensure that the policy is operable and implementable We will work with relevant departments to quickly introduce implementation rules in five areas: automobiles, home appliances, home decoration and kitchen and bathroom, electric bicycles, and mobile phones, clarifying specific subsidy standards and operational processes; at the same time, we will fully consider the connection with the 2024 policy to ensure a smooth and orderly transition. Second, we will improve the working mechanism to make policies more convenient and efficient for the public. Based on summarizing the experience of the 2024 trade-in program, we will further optimize the subsidy application review and fund disbursement processes, improve the functionality of relevant information platforms, and enhance the efficiency of data verification and comparison, allowing subsidy funds to reach consumers faster and more conveniently. Third, we will strengthen publicity and interpretation to increase policy awareness and coverage. After the policy is released, we will simultaneously publish a one-page guide and Q&A manual for the trade-in policies in various fields, addressing the concerns of the public, to ensure that people have a clearer understanding of the policy and can enjoy its benefits. Thank you! Reuters Reporter: Will there be special national bonds issued in advance this year to support "two new" initiatives? How much funding is available to support the trade-in of consumer goods? Zhao Chenxin: Thank you for the question from the Reuters reporter. I will answer this question. As I mentioned at the beginning, General Secretary Xi Jinping emphasized at the Central Economic Work Conference the need to increase the issuance of ultra-long-term special national bonds to strengthen and expand the implementation of the "two new" policy. I understand your question is about the total amount of funding for this year's "two new" work. I can inform you that we have fully considered the consumption needs of the people during the New Year and Spring Festival and have already allocated the first batch of funding for the trade-in of consumer goods this year. After calculations, this batch of funds can fully ensure the smooth continuation of the "two new" policy, especially to meet the subsidy needs of the public during the New Year and Spring Festival. As for the total scale of funding to support "two new" initiatives this year, I can assure you that the total scale of ultra-long-term special national bonds used to support "two new" initiatives has significantly increased compared to last year. Please be patient; the specific amount will be announced to the public during this year's National Two Sessions. That's all for my answers. Thank you! Economic Daily Reporter: To support large-scale equipment upgrades, the People's Bank of China has established re-loans for technological innovation and technological transformation. What is the progress of policy implementation? Thank you. Peng Lifeng, Director of the Credit Market Department of the People's Bank of China: In April last year, the People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Transport, the Ministry of Agriculture and Rural Affairs, and the State-owned Assets Supervision and Administration Commission, established re-loans for technological innovation and technological transformation, with a total scale of 500 billion yuan, of which 400 billion yuan is allocated to incentivize banks to increase credit support for equipment upgrades in key areas, with a re-loan interest rate of 1.75%. The central government provides a 1.5% interest subsidy to borrowing enterprises. Since the implementation of the policy, various departments have cumulatively sent five batches of a total of 23,800 candidate projects to banks. The People's Bank of China and other departments guide banks to quickly connect with these enterprises and projects, open a "green channel" for loan review, optimize product services, and increase credit limits and resource allocation. After the State Council deployed to strengthen the "two new" work in July last year, the People's Bank of China actively improved its working measures and, together with six departments, introduced financial support policies for equipment upgrades, including supporting projects related to equipment upgrades Optimize industrial policy standards, project licensing procedures, and other supporting mechanisms, and hold work promotion meetings to encourage banks and local departments to accelerate implementation. With the joint efforts of all parties, the policy effects are becoming increasingly evident, effectively supporting the implementation of large-scale equipment renewal policies. First, the basic projects have achieved "full coverage" in financing connections. By the end of last year, banks had marketed and connected 22,000 projects, with a connection rate of 93.3%. Second, the scale of signed loan agreements continues to grow. By the end of last year, banks had signed loan contracts with enterprises, allowing them to withdraw over 800 billion yuan at any time, with enterprises having already used nearly 200 billion yuan, corresponding to a total project investment of 2.2 trillion yuan. Additionally, 1,000 projects have reached loan cooperation intentions and are actively pushing for approval and credit granting. Third, financing costs for equipment renewal have been effectively reduced. Banks are actively passing on benefits, transferring the preferential re-loan funds to enterprises. By the end of last year, the weighted average interest rate for equipment renewal loans was 3%, and after adding the central government's interest subsidies, the actual financing cost was only 1.5%, far below the 1-year LPR rate. In the next step, the People's Bank of China will thoroughly implement the decisions and deployments of the Central Economic Work Conference, continue to work with relevant departments to provide financial support for large-scale equipment renewal, better leverage the role of cross-departmental working mechanisms, strengthen cooperation with the finance department, further optimize the re-loan process, support banks in improving service efficiency, expand the scale of equipment renewal loans, reduce corporate financing costs, and stimulate operational entities to release equipment renewal demand. Thank you! China Financial News Reporter: In 2024, the National Development and Reform Commission and the Ministry of Finance allocated 300 billion yuan in ultra-long-term special government bonds to support "two new" initiatives. May I ask how the funds for "two new" have been utilized so far? In 2025, will there be continued issuance of ultra-long-term special government bonds to further support "two new"? What measures will the Ministry of Finance take to ensure the effectiveness of fund utilization? Thank you. Zhao Chenxin: This question will be answered by my colleagues from the Ministry of Finance. Director of the Economic Construction Department of the Ministry of Finance, Fu Jinling: Thank you for the question from the China Financial News reporter. After the National Development and Reform Commission and the Ministry of Finance jointly issued the document "Measures to Strengthen Support for Large-Scale Equipment Renewal and Consumer Goods Replacement" in July last year, the Ministry of Finance promptly allocated 300 billion yuan in ultra-long-term special government bond funds to localities to ensure the orderly advancement of "two new" work. At the same time, we have established a regular scheduling mechanism in cooperation with the National Development and Reform Commission and other departments to closely track the progress of various tasks. Preliminary statistics show that by the end of 2024, based on the approved amounts, the 150 billion yuan in central government funds for consumer goods replacement has been nearly fully utilized. Some localities have proactively increased local funding arrangements after using up their central government quotas early, ensuring that support policies remain uninterrupted. Additionally, the 150 billion yuan for large-scale equipment renewal funds has been allocated to localities according to project law, and the Ministry of Finance has fully distributed the funds to localities, specifying them for specific projects. Currently, the Ministry of Finance and relevant departments are actively sorting out the overall situation of the implementation and fund utilization of the "two new" policies in 2024 and preparing for the preliminary work of fund settlement In 2025, the Ministry of Finance will, in accordance with the spirit of the Central Economic Work Conference, fully absorb good experiences and practices from various regions, further optimize policy measures, and enable "two new" funds to play a greater role in promoting high-quality economic development. First, further optimize fund allocation. For the old-for-new funds for consumer goods, the Ministry of Finance will work with the National Development and Reform Commission to tilt towards regions with better work performance based on the previous relevant allocation factors, according to the principle of "incentive compatibility," and based on the implementation of the old-for-new policy and funds for consumer goods in 2024. Recently, the central government has pre-allocated 81 billion yuan for the old-for-new funds for consumer goods in 2025 to support localities in ensuring the continuity of policy implementation. Second, further increase support. For certain areas with high demand for funds and high social attention, expand the implementation scope and raise subsidy standards. For example, expand the support scope for equipment renewal projects to include electronic information, safety production, facility agriculture, etc.; increase the types of products eligible for home appliance old-for-new subsidies from 8 to 12; implement subsidies for purchasing new digital products such as mobile phones; and appropriately raise the subsidy standards for new energy city buses and power battery renewals, with the average subsidy per vehicle increased from 60,000 yuan to 80,000 yuan. Third, further strengthen the policy linkage of fiscal funds. For the principal of loans related to equipment renewal for eligible operating entities, in addition to the central government's interest subsidy of 1.5 percentage points, arrange for extra interest subsidies using long-term special government bond funds to further reduce the financing costs for operating entities' equipment renewal. Allow localities to explore the linkage between subsidy policies and financial support, effectively amplifying the effects of the old-for-new policy for consumer goods and promoting more high-quality durable consumer goods into residents' lives. Fourth, further optimize the fund application process. To improve the convenience and effectiveness of policy implementation, the Ministry of Finance supports the Ministry of Commerce in integrating a nationwide universal consumer subsidy data platform, ensuring data sharing and automatic comparison, improving review efficiency, and ensuring the safe and efficient use of funds. At the same time, guide localities to pre-allocate some funds to the corresponding payment platforms or operating entities based on actual conditions, improving fund clearing efficiency and reducing the financial burden and operational pressure on enterprises. In the next step, the Ministry of Finance will continue to guide localities to earnestly fulfill their responsibilities for project and fund management, effectively manage and utilize subsidy funds, adhere to the bottom line for fund usage, and ensure that the "real money" policies are implemented and yield results early. Thank you. 21st Century Business Herald Reporter: Regarding the old-for-new policy for consumer goods, this year's policy mentioned implementing subsidies for purchasing new digital products such as mobile phones. What are the main considerations for this expansion? When will the implementation plan be issued at the earliest? How can consumers participate? Are there any restrictions on brands and models? Thank you. Zhao Chenxin: This question will be answered by Mr. Li Gang from the Ministry of Commerce. Li Gang: Thank you for the reporter's question. Implementing subsidies for purchasing new products such as mobile phones is beneficial for boosting consumption and expanding domestic demand. In the implementation of the policy, we adhere to the principles of convenience, fairness, and safety. First, optimize the subsidy process. We will aim for a simple, easy-to-use, and quick operation, reasonably optimizing the subsidy application process, minimizing the operational steps for consumers as much as possible while ensuring fund safety, and enriching payment channels to better meet consumers' diverse and convenient payment needs, enhancing the consumption experience for the public Second, we must adhere to fairness and justice. Support eligible products of different brands and models to participate in subsidies. Whether they are domestic or foreign enterprises, state-owned or private enterprises, large enterprises or small and medium-sized enterprises, online platform enterprises or offline physical enterprises, all can participate in the subsidy policy openly and equally. Each region will reasonably determine and timely update the list of participating entities, and those with serious credit violations or severe illegal activities will be included in the negative list and will not be allowed to participate in the subsidies. Third, strengthen fund management. Products like mobile phones are small in size, high in price, and have strong liquidity, making it difficult to control the risks of subsidy funds. We will enhance data empowerment to verify the authenticity and uniqueness of consumer-related information and transactions, and severely crack down on fraudulent subsidy claims such as selling multiple devices and false transactions according to the law. Next, we will work with relevant departments to expedite the implementation plan, adhere to a unified national approach, standardize actions, and guide localities to accelerate their work progress according to the principle of acting as early as possible, so that the benefits of central policies can quickly reach a wide range of consumers. Thank you! China News Service Reporter: We understand that the 129 standards proposed for revision in 2024 have all been completed. What kind of traction and enhancement will these standards provide? How will the standard enhancement actions for 2025 be carried out? Thank you. Zhao Chenxin: This question will be answered by my colleagues from the State Administration for Market Regulation. Liu Hongsheng, Director of the Standard Technical Management Department of the State Administration for Market Regulation: Thank you for your question. In order to deeply implement the spirit of the fourth meeting of the Central Financial Committee, in March 2024, the State Administration for Market Regulation and seven other departments jointly issued the "Action Plan for Upgrading Standards to Promote Equipment Renewal and Consumer Goods Replacement," implementing a new round of standard enhancement actions to accelerate the improvement of standards related to technology, energy consumption, and emissions, and to assist in large-scale equipment updates and consumer goods replacements. The State Administration for Market Regulation attaches great importance to this and works with relevant departments of the State Council to accelerate the development of important "two new" standards. By the end of 2024, 168 important national standards for the "two new" have been released, of which the 129 that should be completed in 2024 have all been completed, and 39 of the 165 standards that need to be completed in 2025 have been completed ahead of schedule. These mainly involve standards for household appliances, furniture, automobiles, civilian drones, construction machinery, renewable resources, as well as energy consumption limits, product energy efficiency, and safety production. For example, the released safety technical specifications for household appliances, energy efficiency, and several mandatory national standards, along with 103 corresponding recommended national standards, comprehensively and systematically stipulate the safety requirements and verification methods for household appliance products, achieving 100% consistency with international standards, significantly enhancing the quality and safety level of China's household appliance products, and increasing consumers' sense of quality in household appliance consumption. The life of standards lies in their implementation. The State Administration for Market Regulation, together with relevant departments, will take multiple measures to promote the implementation of the "two new" standards. In terms of standard implementation and application, we will promote the certification of green products and high-end products based on standards, and have issued 35,000 green product certification certificates for 113 types of products closely related to consumers, such as electrical appliances and kitchen hardware. We will guide certification agencies to carry out product certifications for smart home appliances, high-quality digital televisions, and elderly-friendly appliances, better meeting the people's demand for green, healthy, and high-quality products In terms of supervision of standard implementation, the involved old-for-new consumer goods will be included in the 2024 key industrial product regulatory catalog and the national supervision sampling inspection plan. More than 14,000 batches of 99 types of consumer goods, including electric bicycles and bathroom furniture, have been sampled. Non-compliant products and their manufacturing and sales enterprises will be dealt with seriously in accordance with laws and regulations. Efforts will be increased in defect investigation and recall, effectively serving the "two new" work. Next, the State Administration for Market Regulation will work with relevant departments of the State Council to accelerate the development of important national standards for 2025. Under the premise of ensuring quality, we will release mature standards as they are developed and try to advance them as much as possible. At the same time, we will strengthen the implementation and application of standards and law enforcement, enhance the coordination and support of policy standards, and support the "two new" work to achieve greater results. Thank you. Xinhua News Agency Xinhua Finance Reporter: Private enterprises are an important entity for large-scale equipment updates. May I ask what the People's Bank of China has done to enhance the precision and effectiveness of financial services for the private economy? What achievements have been made? Thank you. Zhao Chenxin: I would like to invite my colleagues from the People's Bank of China to answer. Peng Lifeng: The People's Bank of China has always regarded supporting the private economy as an important part of serving the real economy. For example, during the implementation of the re-lending policy for technological innovation and technological transformation, we guided and urged banks to balance loan allocations, leaning towards projects of small and medium-sized enterprises (most of which are private enterprises); promoting local governments to enhance the transparency of project selection, supporting more private enterprise projects to be included in the list, accelerating the processing of land, environmental assessment, and other project licenses required for loan approval, increasing financing guarantees and risk compensation efforts, and enhancing the availability of financing for private enterprise equipment updates. So far, over 70% of the signed equipment update loans are projects from private and small micro enterprises. At the same time, the People's Bank of China continues to optimize the construction of financial service capabilities, creating a good financial environment for private enterprise equipment updates: First, we improve the policy system for financial support of the private economy. We held a meeting to promote the development of private enterprises, leading eight departments to issue the "Notice on Strengthening Financial Support Measures to Assist the Development and Growth of the Private Economy," guiding financial institutions to establish the concept of "equal treatment" and continuously strengthen financial services for private enterprises. Second, we increase support for key areas. In addition to supporting equipment updates, the re-lending for technological innovation and technological transformation has allocated 100 billion yuan specifically to support technology-based small and medium-sized enterprises that have not previously obtained loans to secure their first loan financing. Currently, banks and enterprises have signed loan contracts amounting to 115 billion yuan, with nearly 50 billion yuan in loans disbursed. In addition, the People's Bank of China has also allocated a separate quota in the re-lending for small enterprises to support technology-based small and medium-sized enterprises, encouraging local legal person banks to actively support the R&D innovation and technological transformation of small and medium-sized enterprises. Third, we broaden financing channels for private enterprises. We have launched "two new" debt financing instruments in the interbank market to support private enterprises and other entities in issuing bonds for financing, increasing the sources of funds for equipment updates and enhancing the proportion of advanced production capacity. We will continue to leverage the role of bond financing support tools for private enterprises, providing credit enhancement support for private enterprises issuing bonds. We will strengthen the promotion and application of the Zhongzheng accounts receivable financing service platform to facilitate financing for private small and medium-sized enterprises in the supply chain Next, the People's Bank of China will earnestly implement the decisions and deployments of the Central Committee of the Communist Party of China and the State Council, focusing on serving the equipment updates of private enterprises, continuously enhancing the implementation effectiveness of the 25 measures for financial support of the private economy, strengthening tracking and monitoring, and better meeting the financing needs of private enterprises. Thank you! CCTV Reporter: The "Two New" policies have achieved good results in 2024. However, we understand that there are issues of imbalance between different regions and fields. In this regard, has the National Development and Reform Commission considered taking measures to further enhance the execution effectiveness of policies and funds in various regions and fields to ensure greater achievements in the "Two New" work? Thank you. Zhao Chenxin: Thank you for your question; I will answer this. Implementing large-scale equipment updates and replacing old consumer goods nationwide, and after July last year, specifically allocating a portion of ultra-long-term special government bond funds for further support, is the first time this has happened in many years. Over the past year, under the coordination of the "Two New" inter-ministerial coordination mechanism, various regions and departments have been actively exploring to achieve better work results. Through exploration, we are continuously summarizing and accumulating experience while also discovering and solving problems. You mentioned the imbalance between different regions and fields; we understand that this situation indeed exists. Our attitude towards these occurrences is very clear: we must promptly identify these situations through the inter-ministerial coordination mechanism, conduct timely analysis and research, and come up with solutions to promote resolution, thereby continuously improving work and enhancing effectiveness. We will not overlook any issue; this is how we have operated in 2024, and in 2025, we will strengthen and expand the implementation of this policy. We must maintain the good practices of the past and do even better. For this, we have made full preparations with relevant localities and departments. In policy design, we will pay more attention to targeting. We will continue the good experiences and practices of 2024 while keeping the overall framework and policy system of the current "Two New" work unchanged. For situations and problems frequently reported by enterprises and the public, we will come up with more targeted solutions. For example, regarding the issue of simplifying the subsidy application process that everyone has mentioned, we have required localities to widely open government platforms and mobile applications that are well-known to the public as processing channels, and reduce the problem of multiple and repetitive information filling from the source. Another example is the issue of reducing the financial pressure on enterprises; we support localities to pre-allocate some funds to the corresponding payment platforms or operating entities based on actual conditions to improve fund clearing efficiency. I mention these two examples to illustrate that we have targeted measures for each issue. In terms of implementation, we will pay more attention to timeliness. We will hold policy training sessions in advance, plan and reserve projects ahead of time, formulate implementation details for various fields in advance, and build information management platforms in advance to ensure that all policies can be smoothly connected and implemented this year. Our commission will also work with localities and departments to push forward and ensure implementation, and support localities to further play their initiative, proactivity, and creativity. First, we will expedite the allocation of support funds. As mentioned earlier, we have recently worked with the Ministry of Finance to fully assess funding needs and have allocated the first batch of funds for replacing old consumer goods to localities this year. The application work for equipment update projects has also been initiated, and we will quickly review and allocate funds once localities complete their applications Second, we will effectively strengthen supervision and management. We will urge all relevant parties to strictly implement the special government bond support management measures for "two new" funding, ensuring that funds are used specifically for their intended purpose, preventing misappropriation, and ensuring that funds are truly utilized for the "two new" initiatives. In addition, we will severely crack down on illegal activities such as "raising prices before offering discounts" and fraudulent subsidy claims, continuously standardizing market order. Third, we will continue to enhance publicity and interpretation. We will work with relevant departments to guide localities in interpreting various regulations well, allowing enterprises and the public to better understand the policies and enjoy the benefits. We also warmly welcome media friends present to help us with publicity reports, reflecting the bottlenecks and challenges encountered during policy implementation, as well as suggestions from the public on how to optimize our work. We will take every suggestion seriously and double our efforts to ensure that the "two new" policies are effectively implemented. That's all for my response, thank you. Shou Xiaoli: Please continue with your questions. Due to time constraints, we will take the last question. Reporter from Daily Economic News: The update and replacement will eliminate a large number of outdated products and equipment, and mishandling this could lead to new problems such as environmental pollution and resource waste. What arrangements have been made regarding the recycling of old household appliances, old consumer goods, and old equipment in the implementation of the "two new" policy by 2025? What further measures will be taken to promote recycling and circular utilization? Thank you. Zhao Chenxin: Thank you for your question. I will ask Director Liu Dechun to answer the last question. Liu Dechun: Recycling and circular utilization is an important part of the "two new" work. The resource recycling value of waste products and equipment is very high. For example, a small scrapped car can recover at least 30 kilograms of waste rubber, 70 kilograms of waste plastic, and 700 kilograms of waste steel after meticulous disassembly. With the in-depth implementation of the "two new" work, the scrapping and elimination of waste products and equipment have accelerated significantly. In 2024, the national recovery volume of scrapped motor vehicles is expected to reach 8.46 million, a year-on-year increase of 64%. Next, we will deeply implement a comprehensive conservation strategy, strengthen waste recycling in conjunction with the implementation of the "two new" policy, and make significant progress in developing the circular economy. First, we will continue to strengthen the capacity building for recycling and circular utilization. We will continue to allocate special government bond funds to support high-level recycling and circular utilization projects for waste steel, waste non-ferrous metals, and waste electromechanical equipment, cultivating a number of backbone enterprises in the resource recycling field. We will support the China Resource Recycling Group in accelerating the establishment of a national, functional resource recycling and reuse platform. We will support the supply and marketing cooperative system in leveraging the advantages of grassroots outlets to accelerate the establishment of a standardized and regulated recycling and utilization network. Second, we will actively develop the second-hand goods trading and remanufacturing industries. We will support platform enterprises and third-party institutions in providing quality and information erasure inspection services for second-hand goods, standardizing the development of the second-hand goods trading industry. Information erasure refers to the professional, standardized, and thorough deletion of information from digital products such as mobile phones, ensuring user privacy and information security during second-hand mobile phone transactions. We will support the export of second-hand vehicles that meet quality and other relevant requirements. We encourage the remanufacturing of waste electromechanical equipment that meets certain conditions and will replicate and promote pilot measures for the import of remanufactured products in key industries Third, focus on strengthening waste recycling and utilization in key areas. Promote the introduction of supporting documents for the management measures of special funds for the disposal of waste electrical and electronic products, and continue to allocate special funds in 2025 to support the recycling and disposal of old household appliances, promoting the healthy development of the industry. Accelerate the formulation of a work plan for the recycling of old mobile phones and promote the exchange of old digital products for new ones. Support the recycling and reuse of retired power batteries to enhance the security capability of important resources. Fourth, promote the high-quality development of the resource recycling industry. Accelerate the implementation of reverse invoicing for resource recycling enterprises selling scrapped products to individuals. Implement a special action for the promotion and application of recycled materials, enforce the producer responsibility extension system, and support production enterprises in the automotive and electrical and electronic product sectors to increase the application ratio of recycled materials. Strictly crack down on "workshop-style" recycling and dismantling, and investigate and deal with illegal recycling and dismantling of scrapped motor vehicles, retired power batteries, and waste electrical and electronic products in accordance with the law and regulations. Shou Xiaoli: Thank you to all the speakers and to all the journalist friends for your participation. This concludes today's press conference. Goodbye everyone! This article is edited from China.com, edited by Chen Wenfang of Zhitong Finance.