SHENZHEN: The clock struck 9:58 AM on a crisp Tuesday, and the atmosphere at a Suning appliance store in Shenzhen’s Bao’an district buzzed with tension and anticipation.

Five eager sales reps stood ready, phones aloft, as customers hovered in anticipation. Within two minutes, a limited batch of government vouchers would drop, setting off a frenzied race to help consumers secure discounts of up to 20% on appliances like fridges and air conditioners, part of China’s ambitious national trade-in program.

Similar high-stakes scenes erupted at other major retailers, including JD and Sundan. Store manager Xian was on hand to witness the unfolding frenzy, noting that the surge in customers only began in mid-June.

However, a cloud loomed over this consumer excitement. Reports surfaced of subsidy suspensions in various regions, frustrating eager shoppers. Local retailers cited funding shortages and system upgrades as reasons for the halt.

Meanwhile, analysts are pointing out that these pauses might reflect a surprising surge in demand—an optimistic indicator for the trade-in program, which hopes to boost domestic consumption and lessen dependence on foreign markets.

As Zhou Xue, a senior China economist at Mizuho Securities, remarked: “This indicates consumer enthusiasm for the program is robust.”

A Breather Amid Economic Hurdles

Despite ongoing funding pledges from Beijing, experts caution that the trade-in scheme is merely a temporary fix. Broader measures are essential to tackle pressing challenges, such as a faltering property market, tepid job prospects, and mounting tensions with the United States.

As Chen Bo, a senior research fellow at the National University of Singapore, stated, “This period serves as a breather. Other policies are also being rolled out.”

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