BEIJING (Reuters) – China will sharply increase funding from ultra-long treasury bonds in 2025 to spur business investment and consumer-boosting initiatives, a state planner official said on Friday, as Beijing ramps up fiscal stimulus to revitalise the faltering economy.
Special treasury bonds will be used to fund the “two new” initiatives, said Yuan Da, deputy secretary-general of National Development and Reform Commission (NDRC) at a press conference.
“The size of ultra-long special government bond funds will be sharply increased this year to intensify and expand the implementation of the two new initiatives,” Yuan said.
The two new initiatives include a subsidy programme for durable goods, where consumers can trade-in old cars or appliances and buy new ones at a discount, and a separate one that subsidises large-scale equipment upgrades for businesses.
Households also will be eligible for subsidies to buy three types of digital products this year, including cell phones, tablet computers, smart watches and bracelets, Yuan said.
In December, the NDRC said Beijing had fully allocated all proceeds from 1 trillion yuan in ultra-long special treasury bonds in 2024, with about 70% of proceeds financing “two major” projects and the remainder going towards the new initiatives.
China will also increase funding from special treasury bonds and expand the scope for the major initiatives, said Zhao Chenxin, vice head of the state planner, at the pre