The Chinese government has released new details on economic stimulus and it appears to be good news for the green economy.
The government has released text on a number of significant focus areas for the economy, including:
Electric Vehicles
Expand the consumption of new energy vehicles. Implement policies such as building a high-quality charging infrastructure system, supporting new energy vehicles to go to the countryside, and continuing and optimizing new energy vehicle purchase tax reductions and exemptions. Scientifically layout and moderately advanced construction of the charging infrastructure system, accelerate the promotion and application of the battery swap model, and effectively meet the needs of residents for travel charging and swapping. Promote the optimal layout of public charging infrastructure in residential areas and implement residential electricity prices, study the implementation of peak and valley time-of-use electricity pricing policies for charging infrastructure electricity, and promote the reduction of electricity costs for new energy vehicles.
Efficient Home Electronic Consumption
Promote smart home appliances, integrated home appliances, functional furniture and other products, and improve the level of intelligent and green home furnishing. Accelerate the implementation of home appliance after-sales service improvement action. Carry out in-depth trade-in of household appliances, and strengthen the recycling of waste household appliances. Utilize new technologies such as ultra-high-definition video, virtual reality, and flexible displays to promote supply-side technological innovation and electronic product upgrading. Support the consumption of wearable devices and smart products, and create new scenarios for the consumption and application of electronic products.
Green Innovation for Rural China
Carry out green products to the countryside. Regions, where conditions permit, can provide appropriate subsidies for green smart home appliances going to the countryside, home appliance trade-in, etc., and differentiated policy support based on product energy efficiency and water efficiency. Carry out green building materials going to the countryside, and encourage qualified regions to provide appropriate subsidies or loan discounts for the consumption of green building materials.
Promote Green Consumption in China
Actively develop the green and low-carbon consumer market, improve the production and promotion mechanism of green and low-carbon products, and promote the green renewal and quality upgrading of residential durable consumer goods. Improve the energy-saving, low-carbon and green manufacturing standard system, improve the green product certification and labeling system, and encourage the formulation of group standards and enterprise standards in advance. Extensively carry out actions to create economical institutions, green homes, green communities, and green travel, oppose extravagance, waste and excessive consumption, advocate rational consumption, and accelerate the formation of simple, moderate, green and low-carbon lifestyles and consumption patterns.
Earlier the National Development and Reform Commission recommended that China would need to rapidly work toward a more efficient economy and boost consumption – in order to maintain strong economic growth.
The early policy announcements are likely positive news for the growth of electric vehicles on China’s roads, electrification of households, green energy power sources, and infrastructure spending in rural and regional China, according to the NDRC.
Policy advisors had outlined a number of major focus areas which should be bullish for stocks around the world, including green energy providers (renewables, nuclear), electrification infrastructure (copper, aluminium), electronics (rare earth elements, tin), critical and battery minerals (lithium, nickel, graphite) and electric vehicle sales (global EV makers).
Key announcements were made Friday in Beijing.
Automotive Sector and Electric Vehicles:
Encourage automotive companies to develop more efficient vehicles
Encourage the cost reductions and uptake of EVs (tax breaks)
Boosting infrastructure around China for EVs (including charging networks).
Introducing EVs to China’s government sector fleets.
Electrification
New policy includes significant investments in the electrification of the Chinese economy, including;
Infrastructure for rural and regional areas of China.
Boosting consumption of electronics products in Chinese households.
Boosting the consumption of new-age electronics, including electronics with AI integration.
Support for Chinese households to replace old energy-inefficient appliances in the home.
Green Energy
Boosting funding for green energy sources, particularly in rural areas, which may include major investments in renewable energy sources and nuclear power.
