China launches ambitious 'renewal plan' to revive the economy and promote sustainable consumption.

The Chinese government has launched an ambitious plan called the 'Renew Plan' with the aim of reactivating domestic consumption and promoting the green transformation of its economy, estimating a market of around US$ 696 billion. This initiative includes a score of key tasks in five sectors, among which stand out the renewal of machinery, the recycling of used goods, the raising of standards, and the strengthening of regulations. As reported by the official newspaper Global Times, it is expected that this program will generate significant investment in machinery for various sectors such as agriculture, heavy industry, construction, and transportation, with a projected increase of over 25% by 2027 compared to 2023. Likewise, a greater penetration of digital research and development tools in major companies is foreseen, as well as a considerable increase in the recycling of scrapped vehicles and used appliances. The director of China's National Development and Reform Commission has emphasized that this 'Renew Plan' would create a market of over 5 trillion yuan, benefiting sectors such as automotive and appliances. It is expected that the renewal of consumer goods such as cars and appliances will boost consumption spending by around 6% annually this year, which is crucial to achieve the country's official economic growth target set at around 5%. The reasons that have motivated this initiative include low domestic and international demand, deflation risks, insufficient stimulus, an ongoing real estate crisis, and lack of confidence in the private sector. With this plan, China aims to revitalize its economy and promote more sustainable and higher quality consumption, in line with its goal of strengthening its position as the world's second-largest economy.