China is expanding its subsidy program to include smartphones, tablets, and smartwatches to stimulate domestic spending.

This initiative builds on an existing national trade-in program for home appliances and cars.

Officials aim to stimulate the world’s largest smartphone market, where consumer demand has slowed since the Covid-19 pandemic.

The government will fund the subsidies through sales of ultra-long special treasury bonds, with 300 billion yuan (US$41.1 billion) allocated in mid-2025.

The expansion follows successful local trade-in programs that have already increased sales of cars and home appliances.