Subsidy moves to drive uptake

China pledged to expand current subsidies to encourage consumers to upgrade vehicles and home appliances, in the latest step to boost domestic consumption.

A total of 5 billion yuan has been allocated to help people upgrade their vehicles, up from the original budget of 1 billion yuan, the State Council, or the Cabinet, said yesterday in a statement. It said owners of light trucks and passenger vans would get a subsidy from the government if they scrap the used vehicles ahead of schedule and buy new models.

"The move is expected to spur consumption, improve energy efficiency as well as reduce pollution," the State Council said.