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Shenzhen to give out electronics subsidies for Huawei, Oppo, Vivo products to boost economy in China’s southern tech hub

  • Consumers will be able to get back as much as 15 per cent on purchases of eligible home appliances and electronics like smartphones, laptops and drones
  • A preliminary list of eligible products released in April includes more than 3,000 models of Huawei products but none from foreign brands like Apple and Samsung

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A light show featuring 826 drones in China’s southern technology hub of Shenzhen on August 26, 2020. The city has unveiled a new subsidy scheme that covers many electronics, including those from local drone maker DJI, in an effort to boost consumption. Photo: Xinhua

China’s southern technology hub of Shenzhen is turning to subsidies to help boost consumption of a range of electronics and other products that include smartphones, laptops and drones, as the economy remains under pressure from Beijing’s strict zero-Covid-19 policy.

Under the plan, consumers can receive subsidies of up to 15 per cent, for a maximum reimbursement of 2,000 yuan (US$300) per person, on purchases of specified products, according to an announcement jointly issued on Thursday by the Development and Reform Commission of Shenzhen Municipality and a handful of local authorities, including the commerce bureau.

Other electronics covered by the scheme include wearable devices and smart home appliances, robots, and fitness equipment. A preliminary catalogue released on April 30 of electronics and home appliances eligible for subsidies does not list any foreign brands such as Apple or Samsung, but more than 40 per cent of the 8,249 items listed – which includes different models of the same products – are from Shenzhen-based Huawei Technologies Co. Hundreds of Oppo and Vivo products are also listed, while Beijing-based smartphone giant Xiaomi is conspicuously missing.

Reached by phone on Thursday, a representative of the Shenzhen commerce bureau said the list of eligible products will be updated within the next two days, but the person did not know which products or brands might be added.

The measure, which also covers cars and tourism, is designed to “stimulate consumption potential, expand consumer demand and boost consumer confidence”, the government said in its announcement.

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