China Economic News

陸車市內捲嚴重 比亞迪三度降價 零里程二手車搶市｜方念華｜FOCUS全球新聞20250528 ‪@tvbsfocus‬
https://m.youtube.com/watch?v=I2XlUFm0T1o

(12-06-2025, 12:45 PM)Behappyalways Wrote: 陸車市內捲嚴重 比亞迪三度降價 零里程二手車搶市｜方念華｜FOCUS全球新聞20250528 ‪@tvbsfocus‬
https://m.youtube.com/watch?v=I2XlUFm0T1o

I remember Travis Kalanick (Uber) once complained that Chinese scammers were registering new sim cards to enjoy the sign-up bonuses. And when the iPhone first came up, Chinese scammers were racking in big bucks by getting their hands on iPhones in US through signing up mobile subscription plans, pay for only the 1st month and then smuggle them back to China to sell for a premium.

So I suppose any kind of subsidy is just a matter of time before someone is "clever enough" to exploit it on scale.

China car trade-in subsidy halted in some areas as funds run low

Cities in provinces including Guangdong, Henan and Zhejiang have suspended the programme, which gives consumers up to 20,000 yuan (S$2,780) towards the purchase of a newer model car and had been scheduled to run until the end of this year, according to reports from local media including Dahe Daily.

The practice of dealers and traders purchasing new cars in bulk, registering them in order to qualify for rebates, then selling them on the used-car market without ever being driven has added to fiscal pressures and led to probes by authorities, the reports said.

The cash-for-clunkers programme, part of a broader trade-in package aimed at boosting retail sales to support a weakening Chinese economy, has been an important pillar for the nation’s car sales. About 70 per cent of personal car purchases in May utilised the trade-in subsidy, broadly in line with the figure for April, according to data from the China Passenger Car Association.

“These cars came under scrutiny as they’re considered a tactic to fraudulently claim the subsidy,” Li Yanwei, an adviser to the China Automobile Dealers Association, said.

https://www.businesstimes.com.sg/compani...ds-run-low