618 national supplement suspended? The response from many places is coming, and the national subsidy policy will expire on 31 December 2025.
1. The suspension of national subsidies in many places.
Chongqing: Chongqing’s trade-in subsidy for household appliances was suspended on June 5 due to the early exhaustion of 1.2 billion RMB of subsidy funds. At present, the second round of subsidy policy is in preparation, and it is expected to be officially introduced in early June.
Jiangsu: Since June 1, Jiangsu’s national subsidy policy has been suspended due to rectification or system upgrades on some platforms. After the adjustment, consumers can receive and use the subsidy normally, but each platform and merchant will carry out quota management.
Guangdong: The national subsidy activities in some areas of Guangdong (except Jiangmen and Zhongshan) are in an upgraded state and cannot be collected, unbundled or used for the time being.
Hubei, Shenyang: Jingdong, Taobao and other platforms show that “the national subsidy activity is being upgraded”, which cannot be claimed temporarily, and the recovery time is to be determined.
2. Official response and analysis of the causes.
The issue of fund continuity: Wu Xianjian, executive deputy secretary general of the China Household Appliances Business Association, said that the suspension of national subsidies in some areas is due to a short-term interruption in the continuation of funds, the second batch of funds is being allocated, and the third batch of fund planning is also underway. Chongqing, for example, has run out of funds for the first round of subsidies and is currently preparing for a second round of policies.
System upgrades: Jiangsu, Guangdong and other places have suspended some category subsidies due to system upgrades and quota management. The Jiangsu Department of Commerce said that the subsidy will be restored after the adjustment, but the quota will be controlled.
Avoiding the impact of the price system: Morgan Stanley’s analysis pointed out that the suspension of some subsidies in June is to prevent the double superposition of “618 major promotion discount and national subsidy” from causing market price disorder, and short-term adjustment can stabilise merchants’ prices.
3. the second start is imminent! The subsidy rules in the three major areas remain unchanged (until 31 December)
1). Household appliances: the higher the energy saving, the more you can make up.
– Categories covered: 12 types of traditional home appliances such as refrigerators and air conditioners, alongside new microwave ovens, water purifiers, and dishwashers.
– Subsidy: * Level 1 energy efficiency/water efficiency: 20% of the purchase price, up to 2,000 RMB (8,000 RMB for 10,000 RMB refrigerator).
* Level 2 energy efficiency: 15% supplement, up to 1500 RMB.
– Special bonus: Up to 3 air conditioners per household.
2). Mobile phone digital: low-cost machines are more cost-effective.
– Applicable products: mobile phones, tablets, smart watches (unit price≤ 6000 RMB).
– Money-Saving Formula: * ≤3333 RMB: 15% (3000 RMB mobile phone saves 450 RMB)
* >3333 RMB: cap 500 RMB (6000 RMB mobile phone paid 5500 RMB).
– Flagship benefits: models over 6000 RMB (such as Huawei Mate70), JD search “Digital Province 2000” to enjoy additional subsidies from the platform.
3). Automobiles: Scrapping old cars is the most cost-effective.
– End-of-life updates: * New energy vehicles: scrap old vehicles before 2018, up to 20,000 RMB
* Fuel vehicles: scrapped China IV and below vehicles, up to 15,000 RMB.
– Replacement Updates (Local Policy): * The maximum subsidy for the purchase of new energy vehicles is 15,000 RMB, and the maximum subsidy for fuel vehicles is 13,000 RMB (such as Beijing).
>> Key warning: Although the national deadline for automobile subsidies is December 31, Henan and Hunan are recommended to apply before October at the latest due to the tight quota.
4. The national subsidy policy will expire on 31 December 2025.
Despite the suspension in many places, the National Development and Reform Commission has clarified that the national unified deadline for the national subsidy policy in 2025 is December 31, covering three major fields: home appliances, digital and automobiles. However, some areas such as Henan and Hunan may be brought forward to mid-December due to the shortage of subsidies.
5. Consumer coping strategies.
Act early: As subsidy funds may run out early in some areas, consumers are advised to act early to seize the final bonus period. Especially in high-demand areas, such as Henan, Hunan and other places, it is recommended to complete the purchase by mid-December at the latest.
Pay attention to local policies: Some provinces have launched the superimposed benefits of “national subsidy local vouchers”, and the comprehensive subsidy ratio can reach up to 20%. For example, in Jiangsu and Guangdong, subsidies for home appliances and mobile phones are added to consumption vouchers, and the subsidy ratio is increased to 20%.
Preferential choice of online channels: Online channels such as JD.com, Taobao.com, etc., the process is transparent, and the superimposed discounts are supported. Consumers can search for relevant passwords through the JD APP to receive subsidies and enjoy more discounts.
6. The core subsidy standard of the national subsidy policy.
Household appliances: 20% of the subsidised price of Level 1 energy efficiency/water efficiency products, with a maximum of 2,000 RMB for a single piece; Level 2 energy efficiency/water efficiency products are subsidised by 15%, and up to 1,500 RMB are added to 4 types of household appliances such as microwave ovens and water purifiers.
Mobile phone digital category: mobile phones, tablets, smart watches (unit price≤ 6,000 RMB) subsidy 15% of the selling price, cap subsidy 500 RMB. Hunan and Shaanxi added an additional 10%.
Automobiles: scrap old cars before 2018 and buy new energy vehicles with a subsidy of 20,000 RMB; The subsidy for scrapping the emission vehicles of China IV and below is 15,000 RMB to buy fuel vehicles.