Priyanka Tiwari
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Suspense crime, Digital Desk : In an attempt to jolt its sluggish economy back to life, China launched a major stimulus program offering consumers generous subsidies to trade in their old cars and appliances. The plan was a massive hit—so massive, in fact, that it overwhelmed the very systems designed to manage it.
The program, intended to boost weak consumer confidence, sparked a nationwide rush for deals. Eager buyers flooded websites and retail stores to take advantage of government-funded discounts, including subsidies of up to 10,000 yuan (around $1,380) for new cars. But the overwhelming demand quickly revealed major cracks in the program's execution.
The mobile app for car subsidies repeatedly crashed, leaving frustrated consumers unable to submit their applications. At the local level, where the program is administered, officials were caught off guard. Some cities, like Suzhou, saw their allocated funds depleted almost instantly and had to suspend the program altogether. Appliance retailers also reported that their subsidy budgets were running out far faster than anticipated.
This chaotic rollout highlights a key challenge for Beijing. The government is desperately trying to encourage household spending to counteract a deep crisis in the property market and flagging economic growth. The huge consumer response proves that there is significant pent-up demand; people are ready and willing to spend if the incentive is right.
However, the program's stumbles show a disconnect between the central government's ambitions and the local capacity to deliver. Analysts note that while the demand is a positive sign, the overall scale of the stimulus may be too small to have a major impact on the world's second-largest economy.
For now, China is left with a paradox: a stimulus plan so popular it failed, and a clear signal that its consumers are waiting for a better offer to truly open their wallets.
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