Translation. Region: Russian Federal
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
BEIJING, June 5 (Xinhua) — Jiangsu Tengsheng Textile Technology Group Co., Ltd. has been a hub of activity since the beginning of the year. Its participation in the national equipment renewal campaign has opened a promising path to a bright future for the textile manufacturer.
“After the upgrade is completed, our equipment will reach the leading standards in the domestic industry,” said Chen Guichun, deputy general manager of the company based in east China’s Jiangsu Province. “We expect this upgrade to improve our efficiency by more than 5 percent and increase our unit output by about 20 percent.”
The company’s efforts are part of China’s massive trade-in program for equipment upgrades and consumer goods replacement, which was launched in March 2024. The program involves various government departments using ultra-long-term special government bonds to accelerate the implementation of related measures to stimulate investment and consumption.
The People’s Bank of China (PBOC, the central bank) announced last month that it would increase the refinancing quota for technological innovation and technical transformation from 500 billion yuan (about $69.6 billion) to 800 billion yuan. In addition, the regulator also cut the refinancing rate to 1.5 percent from 1.75 percent.
This innovation is part of the PBOC’s structural monetary instruments aimed at expanding domestic demand, said Ding Zhijie, director of the PBOC Financial Institute. “This will ensure continued support for the implementation of the equipment renewal program and the replacement of consumer goods with new ones under the trade-in scheme,” he stressed in the latest edition of the all-media discussion program “China Economy Roundtable” organized by Xinhua News Agency.
“It took only four months from the time we applied to receiving government support, which is a very effective indicator for us,” said Xu Guoqiang, assistant manager of Chilwee Group Co., Ltd., a battery manufacturing subsidiary in east China’s Zhejiang Province.
According to him, the company invested a total of 60 million yuan in upgrading the equipment, of which more than 8 million yuan was provided by the state.
Likewise, many other companies in the country’s key industries have begun upgrading their equipment and are reaping the benefits. In April, the added value of China’s major high-tech manufacturing and digital products sectors grew 10 percent year-on-year, according to the National Bureau of Statistics (NBS).
In the year since the campaign was launched, it has successfully identified the huge potential of the country’s domestic market. In the first four months of this year, investments in the acquisition of equipment and devices grew by 18.2 percent year-on-year. According to the State Statistical Service, the share of the indicator in the overall investment growth for the period was 64.5 percent.
Ding Lin, an official with the National Development and Reform Commission (NDRC), said at a roundtable that China, as the world’s second-largest economy with a population of more than 1.4 billion, has huge potential to expand domestic demand.
To this end, the country should explore more approaches to increasing household incomes and expanding consumer potential, while continuing to optimize its policies in the area of consumption support, he stressed.
In addition to accelerating equipment upgrades across the country, Ding Lin said the NDRC will allocate 800 billion yuan in ultra-long-term special government bonds to support the country’s major national strategies and strengthen security capabilities in key areas. Ding Lin called this a “proactive move” to stimulate effective investment.
“We will accelerate the development of the project and the distribution of funds in order to achieve tangible results as soon as possible,” he concluded. -0-