2026 "Two New" Policy Takes Effect, Sparking Renewal Boom in Autos, Appliances and More

China's national policy on large-scale equipment upgrades and consumer goods trade-ins—commonly referred to as the "Two Renewals" initiative—officially took effect in 2026, launching comprehensive replacement programs across multiple sectors including automobiles, home appliances, and digital smart products. Since New Year's Day, local governments have actively capitalized on the policy benefits, driving sustained growth in consumer market activity. Notably, emerging smart wearable devices such as smartwatches and smart glasses have been included in the subsidy program for the first time, further boosting consumer enthusiasm for upgrades and propelling overall consumption to new heights.