Bill chill in rural home appliance push
- Source: Global Times
- [00:00 October 16 2009]
- Comments
Farmers in Sichuan Province learn about the subsidies for home appliances. Photo: CFP
By Tu Lei
The national rural home appliance push meant to boost country lifestyles and the overall economy as part of China's national stimulus package has slowed after a fast start.
The four-year project began on December 1, 2008, selling electric appliances at prices 13 percent lower than in cities.
According to the Ministry of Commerce (MOFCOM), overall sales figures have shown a steady decline since July, especially for air conditioners and refrigerators, largely due to seasonal factors.
But the paperwork and red tape needed for rural buyers to receive rebates is also seen by some analysts as a factor, though the waiting time for the cash rebates has been officially shortened to 15 days from periods as long as two months in some areas.
The MOFCOM said 6.18 billion yuan ($904.97 million) worth of appliances were sold in September, with a sales volume of 3.16 million units. Those figures were down 18.66 and 16.58 percent respectively compared with August, and dipped 30 and 26 percent respectively compared to July.
However, of the nine appliance categories, six such as washing machines, heaters, and color TVs saw rising sales. Refrigerators and air conditioners, which account for the biggest part in the rebate project, witnessed a big September decline, as did computers and cell phones.
The September sales total for air conditioners was 940 million yuan ($137.69 million), down 42 percent from August, and 2.526 billion yuan worth ($307.02 million) of refrigerators were sold in September, meaning a 30 percent drop from August. The sales volume in August dropped by 35 and 22 percent compared from July.
The decline is mainly due to cooler weather, said Xu Dongsheng, vice-secretary general from the China Household Electrical Appliances Association (CHEAA).
