MK sports Korea 2020 shows the Houhai area in Nanshan District of Shenzhen, south China's Guangdong Province.Photo: Xinhua" src="https://www.globaltimes.cn/Portals/0/attachment/2024/2024-12-18/5867a43b-f016-44f8-8a54-a514fc1ea06c.jpeg" />

Aerial photo taken on Sept. 17, 2020 shows the Houhai area in Nanshan District of Shenzhen, south China's Guangdong Province.Photo: Xinhua

South China's Guangdong Province has taken the lead in China by launching a comprehensive fiscal support package for large-scale equipment upgrades and consumer goods trade-ins in the year, referred to as the 'two renewals,' according to a report from Nanfang Daily on Wednesday.

The province has earmarked over 70 billion yuan ($9.6 billion) to drive these initiatives, the report said.

In Guangdong's Foshan city, efforts to enhance industrial equipment upgrades have been accelerating, Guangdong Television reported.

From January to October, the city facilitated technological transformation for 1,183 industrial enterprises, with more than 1.2 billion yuan allocated to fund equipment upgrades and technological improvements, the report said.

The National Development and Reform Commission (NDRC), China's top economic planner, said recently that funds raised through the 1-trillion-yuan ultra-long special treasury bonds this year have all been allocated to support specific projects and programs across the nation.

Among the total, 700 billion yuan was allocated to implement major national strategies and build up security capacity in key areas, while 300 billion yuan was channeled to fund equipment upgrades and consumer goods trade-ins.

The "two renewals" policies introduced in July have already produced notable results, driving a significant increase in retail sales, Yang Chang, chief analyst of Zhongtai Securities Co, told the Global Times on Wednesday.

According to the latest data from the Ministry of Commerce (MOFCOM), the trade-in program for consumer goods has boosted sales by over 1 trillion yuan. 

As of December 13, the car trade-in program has led to the sale of over 5.2 million passenger vehicles, with more than 2.51 million scrapped and over 2.72 million replaced. Additionally, the home appliance trade-in initiative has resulted in sales exceeding 49 million units across eight major product categories, MOFCOM data revealed.

Efforts are now focused on scaling up and broadening coverage. Multiple provinces and cities across China have already piloted initiatives, with potential for the program to extend from large durable goods to smaller items, Yang said.

The recent agenda-setting Central Economic Work Conference noted that in 2025, "the country will increase the issuance of ultra-long special treasury bonds and continue to support projects for implementing major national strategies and building security capacity in key areas, as well as implementation of large-scale equipment upgrades and consumer goods trade-in programs," the Xinhua News Agency reported.

The meeting also urged enhancing the innovation capabilities and leading role of areas with economic development advantages, supporting major economically developed provinces to play major roles, and encouraging other regions to leverage their local conditions and advantages.

Guangdong, the largest provincial economy in China, has retained its status as the nation's leading economic powerhouse for 35 consecutive years. 

The Guangdong provincial government has reiterated its commitment to maintaining its role as an economic powerhouse. The province aims to boost consumption, optimize investment and stabilize external demand, while effectively leveraging central policy measures such as ultra-long special treasury bonds to better drive project investments and stimulate consumption.