China's digital product sales hit $20 billion in four months due to government subsidies

The Chinese government's subsidies aimed at boosting domestic consumption have led to a surge in the sales of digital products like smartphones, tablets, and smartwatches, generating about $20 billion in just four months, according to the Ministry of Commerce.

As of Thursday, over 48 million consumers participated in the government’s digital product subsidy scheme , purchasing a total of 51.48 million products and driving approximately 143.3 billion yuan (around $19.9 billion) in sales, the ministry reported on Friday, as reported PTI.

Between January and April, retail sales of communication appliances rose 25.4 per cent compared to the same period last year, marking the fastest growth among 16 major consumer goods categories, data from the ministry showed.

In January, China introduced new measures to expand the scope of its consumer goods trade-in programme. The government increased the number of home appliance categories eligible for subsidies from eight in 2024 to 12 in 2025.

Large-scale equipment upgrades and consumer goods trade-in initiatives were launched in March 2024 and revamped earlier this year to boost domestic demand and spur economic growth.

Under the subsidy programme, consumers purchasing smartphones, tablets, smartwatches, or wristbands priced below 6,000 yuan ($850) are eligible for a subsidy covering 15 per cent of the sales price, up to a maximum of 500 yuan ($71) per item. The programme is available for both domestic and foreign brands.

The Chinese government has been encouraging efforts to enhance domestic demand to strengthen the economy and counter external risks amid growing trade tensions with the US.

These subsidies have led millions of Chinese consumers to upgrade their devices, benefiting both domestic and foreign brands. According to reports from official media, the government also offers a subsidy of 20,000 yuan (around $2,850) for electric vehicles.

The Ministry of Commerce noted that the digital product subsidy policies have contributed to a market shift towards higher-end products.

Third-party data revealed that the sales volume of smartphones priced between 2,000 yuan ($278) and 4,000 yuan ($570) increased by 13 per cent year-on-year during the first four months of 2025, while sales of smartphones in the 4,000 to 6,000 yuan ($850) range surged by 43 per cent.