China's digital product sales rise on subsidy support

BEIJING, May 23 (Xinhua) -- Sales of digital products in China have expanded over the past few months, spurred by a government-backed subsidy program, the Ministry of Commerce said Friday.

As of Thursday, over 48 million consumers had participated in the digital products subsidy scheme, buying a total of 51.48 million products and generating about 143.3 billion yuan (about 19.9 billion U.S. dollars) in sales, data from the ministry showed.

From January to April, total retail sales of communication appliances surged 25.4 percent from a year ago, representing the fastest growth among 16 major consumer goods categories, the data showed.

The ministry said that subsidy policies for digital products have facilitated an upgrade towards higher-end products in the market. Third-party data showed that the sales volume of smartphones priced between 2,000 to 4,000 yuan rose 13 percent year on year in the first four months, while those in the 4,000 to 6,000 yuan range saw sales jump 43 percent.

China launched the subsidy program in January, as part of broader efforts to bolster domestic consumption. Under the plan, consumers purchasing smartphones, tablets, smartwatches, or wristbands priced below 6,000 yuan per item are eligible for a subsidy covering 15 percent of the sales price, up to a maximum of 500 yuan per item.

The program applies to both domestic and foreign brands. Enditem