Industrial Policy & Trade Monitor· 2678 actions· ✨ 92 recent

China's Ministry of Finance, NDRC, People's Bank of China and National Financial Regulatory Administration jointly issued Cai Jin [2026] No. 2 on 2026-01-19, optimizing the central-fiscal interest-subsidy policy for equipment-renewal loans. The central government subsidizes 1.5 percentage points of loan principal interest on qualifying fixed-asset loans for equipment-renewal projects, capped at two years, and widens eligible sectors beyond traditional industrial/energy/transport/logistics categories to include construction, AI equipment, aerospace materials, agricultural facilities, cold-chain infrastructure and elderly-care equipment. It also folds bank-originated science-and-technology-innovation loans issued from 2026 (previously supported only via PBOC relending) into the fiscal interest-subsidy scope, and simplifies disbursement via a "pre-disbursement + settlement" mechanism across 26 participating banks. The policy runs through 2026-12-31, extendable.

On 2026-01-15 the People's Bank of China announced a CNY 400 billion increase to its science-and-technology-innovation and equipment-renewal relending facility (科技创新和技术改造再贷款), raising the total quota from CNY 800 billion to CNY 1.2 trillion. The measure supports the optimized implementation of the "two new" (equipment renewal / consumer trade-in) policy programme, and from 2026 extends eligibility to private small and medium-sized enterprises with relatively high R&D spending, which were previously excluded from this relending window.

Jiangsu's provincial Development and Reform Commission and Department of Finance jointly issued a notice on 2025-01-22 expanding the province's 2025 equipment-renewal and consumer trade-in support package under the national "ultra-long-term special treasury bond" program. For qualifying enterprise equipment-renewal bank loans — including transportation, logistics, energy, industrial and agricultural-machinery equipment — Jiangsu's provincial finance department layers an additional 1 percentage point of loan-interest subsidy on top of the 1.5-point central-fiscal subsidy already provided nationally, with a financing-guarantee subsidy covering 80% of guarantee fees (capped at 3 years) for small and micro enterprises accessing renewal loans through the province's "Equipment Guarantee" (设备担) scheme.

On 13 March 2024 the State Council issued the Action Plan on Promoting Large-Scale Equipment Renewal and Consumer Goods Trade-In as Guo Fa [2024] No. 7, distributed by NDRC alongside ten implementing ministries. Branded the "Two New" (两新) initiative, it is the flagship Xi/Li-era domestic-demand industrial-policy instrument structured around four action lines (equipment renewal, consumer-goods trade-in, recycling and circular utilisation, standards uplift) with twenty specific tasks and 2027 quantitative targets including ≥25% increase in equipment investment vs 2023 across industry, agriculture, construction, transport, education and healthcare. Funded by CNY 150bn of ultra-long-term special treasury bonds in 2024, expanded to CNY 300bn earmarked in 2025, the programme drove >CNY 1.3 trillion of consumer-goods trade-in transactions (autos, appliances, home furnishings, e-bikes) in its first year and is the central pillar of Beijing's response to the property-sector slowdown.