Shanghai has introduced a comprehensive plan to boost economic activity and to support its sustainable development through a series of trade-in programs.

The plan includes several key initiatives:

1. Vehicle trade-ins: Increased subsidies for replacing used fossil fuel-powered vehicles with new energy or fuel-efficient vehicles. Subsidies of up to 20,000 yuan ($2,810) are available for the purchase of new energy vehicles and 15,000 yuan for efficient fossil fuel-powered vehicles.

2. Home appliances trade-ins: Subsidies are provided for replacing used home appliances with energy-efficient models. Subsidies cover up to 20 percent of the purchase price for energy-efficient appliances, with a maximum of 2,000 yuan ($281.76) per item.

3. Electric bicycles trade-ins: A 500-yuan subsidy is available for trading in used electric bicycles and purchasing new, certified models.

4. Support for freight vehicles and agricultural machinery: Enhanced subsidies for trade-ins of freight vehicles and agricultural machinery for purchasing new, low-emissions models.

5. New energy buses: Fixed subsidies of 80,000 yuan per new energy city bus and 42,000 yuan for battery replacements.

Guidelines for subsidizing trade-ins of used consumer goods

Main targets

Key support:

Recycling of scrapped vehicles and replacements

Consumer vehicles trade-ins

Home appliances trade-ins

Electric bicycles trade-ins

Home furnishings, household items, senior-friendly products

Coordinated support:

Recycle and replacement of scrapped freight vehicles

Recycle and replacement of used agricultural machinery

Purchase of new energy buses and replacement of batteries

Supporting details

1. Implement national policy for recycling and replacement of scrapped vehicles:

- Eligibility

Scrapping of fossil fuel-powered vehicles owned by an individual, meeting China III emission standards, or new energy vehicles registered before April 30, 2018 (inclusive)

Purchase of new energy vehicles listed in the "Catalog of New Energy Vehicles Purchase Tax Exemption" or fossil fuel-powered vehicles with an engine capacity of 2.0 liters or less.

- Subsidy standards:

20,000 yuan for purchasing new energy vehicles.

15,000 yuan for purchasing fossil fuel-powered vehicles with an engine capacity of 2.0 liters or less.

2. Municipal subsidy standards for car trade-ins:

15,000 yuan for eligible trade-ins of used vehicles for new electric cars

12,000 yuan for eligible trade-ins of used vehicles for new National VI-B standard fossil fuel-powered cars.

3. Implement national policy on home appliances trade-ins:

- For individual consumers purchasing refrigerators, washing machines, televisions, air conditioners, computers, water heaters, household stoves, or range hoods with Grade-1 energy efficiency, a subsidy of 20 percent of the listed price is given. For Grade-2 energy efficiency products, a subsidy of 15 percent of the listed price is given.

- Each consumer can receive a subsidy for one item per product category, with each subsidy not exceeding 2,000 yuan.

* Subsidy is provided through a coupon system on mobile payments channels and redeemed at participating stores.

4. Support for trade-ins of home appliances, home furnishings, household items and seniors-friendly products:

- For individual consumers purchasing eligible products such as sofas, mattresses, cabinets, bathtubs, toilets, robot vacuums, vacuum cleaners and air purifiers, a subsidy of 15 percent of the purchase price is provided.

- Specific product lists will be defined by the Shanghai Municipal Commission of Commerce in conjunction with relevant departments.

- Consumers can use UnionPay, Alipay, or WeChat Pay for each subsidy claim, with a maximum of 2,000 yuan per transaction for subsidy.

5. Promote electric bicycles trade-ins:

- For individual consumers who have their used electric bicycles (including batteries) scrapped and purchase a new electric bicycle certified by national mandatory product certification, a one-time subsidy of 500 yuan is provided.

6. Implement national standard on replacement of freight vehicles with lower emissions standard:

- Support the replacement of National III or lower emissions standard diesel freight vehicles with high-standard, low-emissions vehicles.

- Provide subsidies for the scrapping of freight vehicles with National III or lower emissions standard and the purchase of National VI standard or new energy freight vehicles.

7. Support for scrapping of diesel vehicles with National IV emissions standard:

- Provide fixed subsidies for the disposal of various categories of National IV diesel vehicles (medium-sized freight vehicles, heavy-duty freight vehicles, medium-sized passenger vehicles, large passenger vehicles, medium-sized special operation vehicles and heavy-duty or large special operation vehicles)

- Provide subsidies for the replacement of National IV diesel vehicles with new energy vehicles

8. Increase subsidy standards for new energy buses and battery replacements:

- Provide fixed subsidies for upgrading new energy buses and replacing batteries.

- 80,000 yuan per new energy bus on average.

- 42,000 yuan per battery replacement.

9. Implement national policy on agricultural machinery:

- Provide subsidies for scrapping and replacing used tractors, grain combine harvesters, rice transplanters, rice seeders, agricultural Beidou -assisted driving systems and grain dryers.

- Increase the subsidy for scrapping tractors with less than 20 horsepower from 1,000 yuan to 1,500 yuan.

- Increase the subsidy for scrapping combine harvesters and similar machinery by up to 50 percent on top of the current standard.

Funding Sources

Funded by national long-term special government bonds and municipal finances in an 85:15 ratio.

Source: "shanghaifabu" official WeChat account