Consumer electronics see electric performance

High-tech gadget purchases, including via trade-ins, boosting consumption

Douyin e-commerce invites online anchors to broadcast live at the Appliance &Electronics World Expo in Shanghai on March 20. (CHEN YUYU/FOR CHINA DAILY)

China's consumer electronics sector is witnessing a remarkable upswing, on the back of technological innovation and favorable policy support to spur consumption, officials and company executives said.

Since February, China's consumer electronics sector has seen its industry index surge 11.7 percent, said Shenwan Hongyuan Securities.

E-commerce platform Tmall also reported a spike in sales between Jan 20 and Feb 9. Smartphone transactions rose over 41 percent, tablets over 72 percent, and smartwatches/bands in excess of 60 percent compared to the previous month.

The recovery in demand for consumer electronics has been driven by a combination of supportive government policies and tech advancements, experts said.

The electronics department of the Ministry of Industry and Information Technology said in an interview with China Daily that: "China's stable supply chain, recovering global demand and robust policy support have solidified its position as the world's largest producer of consumer electronics. Moving forward, the industry is poised to capitalize on opportunities brought by next-generation artificial intelligence, accelerating the adoption of new technologies and products while enhancing the resilience and security of the supply chain."

A key highlight of this year's policy initiatives is the introduction of subsidies for purchasing new digital products such as smartphones and tablets. During the Spring Festival period (Jan 28 to Feb 4), national smartphone sales revenue surged by approximately 182 percent, with over 4.5 million digital products sold. Sales of these products accounted for 45 percent of the total revenue generated from the trade-in program, said the National Development and Reform Commission.

The revitalization of the consumer market has also spurred growth in upstream supply chains, creating new opportunities for related sectors. As of the end of 2024, China had 1.79 billion mobile phone users. If 10 percent of these users participate in the trade-in subsidy program, it could generate a market size of hundreds of billions of yuan for smartphone replacements, experts added.