China has issued a new round of government bonds worth 93.6 billion yuan, or $13.4 billion, to support equipment upgrades across key sectors of its economy. The announcement was made on Thursday by the National Development and Reform Commission (NDRC), the country’s top economic planning authority. This issuance marks the first batch of ultra-long-term special treasury bonds for the year and forms part of ongoing measures to stabilise economic activity.
Ultra-long-term special treasury bonds are government-issued bonds with very long repayment periods. They allow the government to raise funds for large-scale projects while spreading repayment over many years. The funds raised through this issuance are strictly allocated and are not meant for general spending. Instead, they are focused on improving and modernising equipment that supports economic production and public services.
According to official information, the bond issuance is designed to support equipment upgrades in several areas that directly affect industries and households. These targeted investments are intended to stimulate activity by encouraging both public and private spending.
Funding Targeted at Key Sectors and Infrastructure
The NDRC stated that the bond funds will be used to support equipment upgrades in industry, energy, education, healthcare, and the renovation of old residential elevators. These sectors were selected because of their importance to economic operations and everyday life.
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In the industrial sector, the funding will help replace older machinery with newer and more efficient equipment. Many factories rely on aging systems that are less productive and consume more energy. Equipment upgrades can improve efficiency and reduce operational strain.
The energy sector will also receive support. Upgraded energy equipment can improve reliability and efficiency, which is essential for both households and businesses. Education and healthcare are included to support upgrades such as modern teaching tools, updated facilities, and improved medical equipment.
Another key area is the renovation of old residential elevators. Many apartment buildings have elevators that no longer meet current standards. The bond funds will help support renovation and replacement work, improving safety and convenience for residents.
Although the bond issuance totals 93.6 billion yuan, the NDRC said the supported projects are expected to drive total investment of more than 460 billion yuan. This reflects the government’s aim to use central funding to encourage additional investment from other sources, including local governments and enterprises.
Linked to Broader Consumption and Policy Measures
This latest bond issuance follows earlier funding measures. In December, China allocated 62.5 billion yuan, or $8.98 billion, from ultra-long special treasury bond funds to support its 2026 consumer-goods trade-in programme. This programme encourages households to replace older consumer goods with newer products, helping stimulate spending.
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At the same time, the scope of equipment upgrades was expanded to include more sectors connected to daily life. This expansion reflects a focus on areas that directly impact households, alongside industrial development.
In addition, a state planning official said earlier this week that China plans to roll out new policies from 2026 to 2030. These policies aim to boost domestic consumption and address what were described as “prominent” imbalances between supply and demand. Domestic consumption refers to spending within the country, which is seen as an important factor in maintaining stable economic activity.
The equipment upgrade funding fits into these broader efforts by supporting production capacity while improving the quality of goods and services. The use of ultra-long-term bonds allows these investments to be financed over an extended period, reducing short-term fiscal pressure.
The exchange rate provided alongside the announcement shows that one US dollar equals 6.9614 Chinese yuan renminbi, giving context to the dollar value of the bond issuance.
All details outlined reflect officially released information and describe current measures being taken to support equipment upgrades, consumer programmes, and economic balance, without altering the original facts or timeline.
