In 2025, the 300-billion-yuan (US$43b) in subsidies issued by the central government in a bid to stimulate domestic consumption exerted a moderate but sustainable influence. Doubled in size from 2024, those subsidies, mostly between 300 yuan (US$43) to 2,000 yuan (US$286) for a single purchase, covered a wide range of products, such as automobiles, electric appliances, personal gadgets and smart home renovations. The subsidies also affected the country’s e-commerce platforms. JD.com, one of China’s biggest e-commerce platforms, revealed that its home appliance retail sales grew faster than other categories, whereas Pinduoduo, a group-buying e-commerce platform that lures consumers with its low prices, suffered a net profit loss in the first quarter of fiscal year 2025. Experts pointed out the subsidy policy has been a test of platforms’ supply and service chains.
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