Energy-saving appliances to be subsidized by China

China is setting aside US$4.2 billion to subsidize consumer purchases of energy-saving household appliances.

The subsidy for those who buy energy-saving household appliances can be as high as US$63 per unit. In addition, China is prepared to spend US$942 million to subsidize consumers who buy energy-efficient vehicles.

China is taking these unusual steps to promote domestic consumption and stimulate its steadily slowing economy amid concerns about the damage that might be inflicted by the worsening Eurozone debt crisis.

The subsidized appliances include water heaters, refrigerators, flat-panel televisions, energy-saving air conditioners and washing machines. The subsidy is expected to boost appliance sales of flat panel TVs and air conditioners by over US$21 billion.