Title: China’s Two New Policy Receives Over 300 Billion RMB in Support to Benefit Consumers and Business Entities
Beijing, China – September 23, 2024
China’s National Development and Reform Commission (NDRC) held a special press conference on September 23 to introduce the overall progress of the Two New policy. The policy, aimed at spurring economic growth through large-scale equipment updates and consumer product upgrades, has been bolstered with over 300 billion RMB in direct financial support, ensuring that both consumers and business entities can truly enjoy the resulting benefits.
Significant Financial Allocation
The NDRC revealed that the Two New policy, which includes substantial equipment replacement and consumer product upgrade initiatives, has been allocated 300 billion RMB from the ultra-long-term special national debt. The funds are required to be distributed and utilized effectively before the end of the year. According to the NDRC, the current progress of the policy’s implementation aligns with expectations.
The implementation of the ‘Two New’ policy, especially with the enhanced support, has seen the allocation of 300 billion RMB in ‘solid gold’ from the ultra-long-term special national debt. We are on track with the expected progress, stated Zhao Chenxin, Deputy Director of the NDRC.
Ensuring Effective Implementation
The NDRC has completed foundational work to ensure the policy’s smooth implementation, with tangible results already becoming evident. The commission has been actively identifying and addressing bottlenecks and challenges that hinder the policy’s execution, introducing practical and effective measures to overcome these issues.
Zhao emphasized the importance of comprehensive policy implementation, stating, We are committed to advancing policies that offer real benefits to consumers and business entities. The groundwork has been laid, and we are seeing the fruits of our labor.
Stringent Management of Funds
To ensure that the allocated funds are used appropriately, the NDRC has established a management method for the special funds, setting clear guidelines for the full chain of fund allocation and use. The commission is closely monitoring the utilization and management of funds across various regions and sectors to ensure compliance with the intended purposes.
We have developed a stringent management framework for the special funds to ensure that they are directed as intended. We are conducting a thorough review of fund usage and management in different regions and sectors, added Zhao.
Addressing Misuse and Abuse
The NDRC has also vowed to take stringent action against any misuse of funds, including fraudulent subsidies and embezzlement. The commission will collaborate with relevant departments to address such issues in accordance with the law.
Where there are instances of fraud, subsidy manipulation, or misappropriation of funds, the NDRC will work with relevant authorities to take legal and regulatory action, warned Zhao.
Conclusion
The Two New policy is a significant initiative by the Chinese government to stimulate economic growth through targeted support for equipment updates and consumer product upgrades. With over 300 billion RMB in direct financial support, the policy aims to deliver substantial benefits to both consumers and business entities, ensuring a sustainable and prosperous economic landscape for China.
About the NDRC:
The National Development and Reform Commission is China’s top economic planning agency, responsible for overseeing and guiding the country’s economic and social development.
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