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Energy-Efficient Household Appliances Designated a Mainland Priority

15 February 2016 15:27

Government-backing and a number of related incentives have seen mainland manufacturers actively developing an increasingly efficient range of household appliances with a view to taking a global lead in this highly competitive sector.

With energy-efficient household appliances now designated as a priority development sector by the mainland government, manufacturers have been swift to take up the gauntlet. This has seen a move towards establishing China as a global leader in the production of such appliances and has also acted to bolster domestic demand. Despite the progress to date, though, the government's ambitious targets for the industry still require manufacturers to overcome a number of technical challenges if mass-market success is to be guaranteed.

Incentives for Domestic Producers

Under a series of incentives introduced last November, mainland purchases of nine categories of energy-efficient household appliance will be subject to a 13 subsidy. The categories covered include refrigerators, air conditioners, water heaters and air purifiers, with appliances meeting China Energy Label's Grade 1 criteria receiving the full 13 subsidy, while those complying with only the Grade 2 requirements receiving only 8. With a maximum subsidy of Rmb800, per product, the policy is set run until 30 November 2018.

Both online and conventional sales are covered by the policy, prompting both sectors to heavily promote the incentive programme., one of the mainland's leading e-tailers, for instance, highlighted the scheme across its portal as soon as it was announced.

For many within the industry, the scheme has been seen as a key way of boosting the development of energy-efficient appliances, as well as supporting the overall growth of the sector. It is also expected to weed out those manufacturers unwilling or unable to upgrade their products.

In addition to the subsidy scheme, a new Energy-efficiency Leaders programme is now set to be introduced. This will act to recognise those products or manufacturers that maintain the highest energy efficiency standards within a particular category.

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