China's efforts to spur consumer spending are off to a strong start this year, with government subsidy measures driving a surging demand in digital products, the Ministry of Commerce said on Thursday.

Since the program's launch on Jan. 20, more than 42 million consumers have applied for subsidies to purchase smartphones and other digital devices, resulting in total sales of 66.95 billion yuan (about 9.33 billion U.S. dollars) as of Tuesday, according to data from the ministry.

In the first two months of the year, retail sales of communication equipment reached 159.4 billion yuan, increasing 26.2 percent year on year, according to the National Bureau of Statistics.

This growth rate was 10 percentage points higher than the same period in 2024, and outpaced all other major consumer goods categories.

China implemented the subsidy program as part of broader efforts to bolster domestic consumption. Under the plan, consumers purchasing smartphones, tablets, smartwatches, or wristbands priced below 6,000 yuan per item are eligible for a subsidy covering 15 percent of the sales price, up to a maximum of 500 yuan per item. The program applies to both domestic and foreign brands.

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