Beijing bets on rice cookers and microwaves to boost economy

The Chinese government has expanded a list of products that people can exchange for a discount of up to 20% on new products as the country tries to boost its ailing economy.

The list now includes items such as microwave ovens, dishwashers, rice cookers, and water purifiers.

State-backed trade-in plans already covered televisions, phones, tablets and smart watches, as well as electric and hybrid vehicles.

The world’s second-largest economy has been facing several challenges, including weak consumer demand and a deepening housing crisis.

On Wednesday, officials said 81 billion yuan (£8.9 billion; $11 billion) had been allocated to the consumer goods sharing scheme this year.

China’s top economic planning body has said the plans, which were launched in March, have already produced “visible effects”.

According to the country’s Ministry of Commerce, the policies have boosted sales of large items such as household appliances and automobiles.

But some economists have questioned whether the plans will be enough to significantly increase consumer spending.

“The approach has had mixed success so far,” said Harry Murphy Cruise, head of China economics at Moody’s Analytics.

“While it has supported sales of some hot-ticket goods, such as cars and appliances, it has not driven an overall rebound in spending.”

In recent months, China has been pushing for more measures to support its domestic economy as the country’s exporters face growing challenges.

In December, a key meeting of China’s leaders highlighted the need for “vigorous” efforts to boost consumer spending.

This came as President-elect Donald Trump, who will return to the White House this month, threatened to impose a 60% tariff on products made in China.

China is due to announce its economic growth figures for 2024 next week, which Beijing expects will be around 5%.