Shenzhen, known as China's technology hub, is currently under pressure from Beijing's strict COVID-19 policy.
In order to help boost the economy, the Shenzhen government introduced an enticement program that will give consumers 15% subsidies on qualified items.
Shenzhen's Subsidy Program
According to South China Morning Post, the program, which has a budget of $15 million, was first introduced in April.
The subsidy plan allows consumers to receive subsidies of up to 15%, for a maximum reimbursement of $300 per person, on purchases of qualified 9,407 products.
This is the government's attempt to boost the consumption of home appliances and electronic gadgets, excluding the products of tech giants like Apple and Samsung.
The plan will focus solely on Chinese brands as their sales plunged 11% due to the COVID-19 lockdown in the country.
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Products Included in the Subsidy Plan
The electronics covered by the program include smart home appliances, fitness equipment, wearable devices, and robots. Authorities posted the initial list of products on Apr. 30, but it was updated on June 1.
Around 40% of the items on the list are from Shenzhen-based companies like Huawei, Oppo, Lenovo, Hisense, Midea, TCL, Gree, Konka, Skyworth, and Vivo.
Apple, Samsung, LG, and Beijing-based Xiaomi are missing from the list.
Shenzhen's program will run until the end of August or until the $15 million budget is used up. Consumers who wish to participate in the subsidy program will have to fill out an online application form through WeChat.
In April, Shanghai announced that it is also working on policies that will help boost its economy. The city lifted its COVID-19 lockdown on June 1, giving 90% of its population the chance to shop again after two months of isolation.
The government of Shanghai said that it is thinking of providing a $1,500 subsidy for electric vehicle purchases and pushing for discounts on e-commerce platforms.
e-CNY Vouchers in Shenzhen
Shenzhen has teamed up with China's local service giant Meituan in a lottery-type giveaway that will give the residents digital currency that they can spend on groceries, food deliveries and even bike rentals.
The e-CNY vouchers that will be handed out is worth $4.5 million and are in the form of a virtual red packet, which is a Chinese symbol of good fortune, according to Gadgets360.
Residents who are interested in joining the lottery will need to register online via the Meituan app. The results of the first round of the giveaway will be announced on June 2, according to Coin Telegraph.
For those who were not able to register, they still have a chance to win e-CNY vouchers as the second round starts on June 9.
The Commerce Bureau of Shenzhen Municipality wants this campaign to promote the recovery of consumption in the country while maintaining the COVID-19 protocols such as social distancing.
Shenzhen is one of the first cities in China to launch e-CNY. Since 2019, the city has released more than $11 million of e-CNY vouchers in four different rounds.
The government officials of Shenzhen did not reveal a fixed schedule for the e-CNY lottery, but it is highly likely that a third-round will happen before 2022 ends.
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Written by Sophie Webster
