Until not so long ago, it was common to change cell phones from time to time, usually every year or less; Smartphone technology was relatively new, so manufacturers made leaps and bounds with each new generation. This is changing, and today it is increasingly common for our mobile phone to last several years before having to change it, thanks to new policies like expanded Android support.
We must also take into account that each new generation of smartphones improves less compared to the previous one; we are faced with “evolutions” and not “revolutions”and many people prefer to wait a little longer before changing their mobile. This change in morals has its advantages, but also its disadvantages, particularly in the economic field on a global scale.
China therefore made a decision which may seem surprising, but which is entirely logical given the context: grant to buy a new mobile. Concretely, the government has decided to expand the exchange program already in place to encourage the purchase of more efficient devices and less polluting cars; according to statements from members of the government, collected by BloombergSince this year, smartphones, tablets and smart watches are also included.
This program allows Chinese citizens exchange your old device and get a discount in purchasing a more modern replacement part, a process subsidized by the government.
To finance this aid to more types of products in addition to those already part of the program, the government will increase the sale of special government bonds. In addition to promoting the sale of consumer products, the program should encourage businesses to upgrade their IT equipment.
The Chinese government's objective with these new subsidies is obvious: to encourage consumption, particularly of domestic products of brands such as Huawei and Xiaomiand through platforms such as Alibaba (AliExpress in Europe) and JD.com; In this way, he hopes to remedy the effects that new US tariffs on Chinese exports are having on the economy.
The technology industry is precisely one of the most affected by the US government's measures, with some companies like Huawei being completely blocked commercially; This new move aims to help both Huawei and the rest of Chinese manufacturers promote sales of their new devices. It's not that things are bad for them; Huawei has managed to surpass Apple in the global smartwatch market, and Xiaomi has managed to occupy the second global position in mobile phone sales and is the best-selling brand in markets like Europe.
