Appliance depth: China will exceed the U.S. as the world's largest home appliance market.

<p> 3 month, the Ministry of Finance, the Ministry of Commerce, Ministry of Environmental Protection issued a notice, by the end of May 2010 after the pilot appliance trade policy, capacity conditions in the region with the full dismantling to promote implementation. .Subsequently, the Ministry of Finance also proposed, would be within the scope of the pilot provinces and cities bidding to determine the appliance trade simply recycling business, transportation subsidies, subsidies to the standard criteria based on the original increase of 10 yuan each. .Why the old appliances will be new policy nationwide? .China's home appliance industry, this policy will have what effect? .See the current "home appliances depth": China will exceed the U.S. as the world's largest home appliance market. .</ P> <P> <P> <p> Moderator: friends, Hello everybody, welcome to this edition of "appliances in depth." .First, we welcome advice about our old friend, senior director of Luo Qingqi pal teacher. .Luo, according to the Ministry of Commerce web site a message, as of March 8 this year, home appliance trade appliances nine pilot provinces and cities were recovered 8.15 million units, sales of 7.58 million units of new home appliances, selling approximately 300 million or so the amount of ., how do you view the effect of this trade-in policy? .</ P> <p> Luo Qingqi: obviously. .What does this mean? .I think this policy of releasing a huge market demand. .But now a pilot, basically between the developed eastern provinces of the nine pilot projects, there are western, such as the Changsha, I think this result is still very prominent. .Beijing's trade-in about one-tenth the number of accounts. .Now place this year can apply this policy, the relevant state departments to grant, grant access after the sequence of the TM. .Media analysis, this is a start signal a massive scale. .It is one thing. .I think from the government on the design of this policy, the market point of view of echo effect of this policy is very good. .</ P> <p> But even more important effect is it? .Or the state of the entire global economic instability, as a main industry, such as automotive, electronics are the main industry, a key industry, which boost the economy of the entire economy, stimulating economic growth is significant. .</ P> <p> Moderator: Do you think early March, the Ministry of Finance, Ministry of Commerce, including environmental protection does not publish notice that the end of May 2010 after the end of appliance trade policy, capacity conditions in the region with dismantling .promote the implementation of a comprehensive, what do you think such a notice? .</ P> <p> Luo Qingqi: take it to deepen, to promote open. .Because the policy is a public product, after the introduction of this policy, it is actually steady progress step by step, step by step, stage. .In addition, the beginning of the primary process of the implementation of this policy to collect together some of the problems, do the policy adjustment. .I think the country still have the determination to do this policy. .</ P> <p> Moderator: It is noteworthy that recently the State also provides for the recovery of a simple appliance trade and transport business with, regardless of category, freight subsidies on the basis of the original standard increased 10 per .money, do you think the significance of this move where? .</ P> <p> Luo Qingqi: Do not underestimate the 10 dollars now, in fact, that the national policy to promote the firmness of this. .Do you want to apply for trade-in, the other products in the logistics chain to do subsidies, which are some of the policies of the patch to the whole recycling chain logistics to do some subsidies, that is more supportive of this policy, it, .some of the details of the adjustment. .</ P> <p> such adjustments bring? .The potential release of a huge consumption. .Why? .In fact, China's household electrical appliances, major household bulky, refrigerators, washing machines, television life in general in this decade or so, that is, twelve years or so, a large number into the home in 1990, 1990, 2010, 20 years, and now some of our appliances .still in use, in fact, there are some risks, a number of extended service products that now need to be replaced. .Years of a cycle. .Now some products in the two cycles, of course, the replacement of a large area, I think with this policy to promote the release, after a very large amount, the amount of uncertainty in the global economy of the state, I think it was more like a stable .period. .</ P> <p> Moderator: including now many people may have begun to replace their television products, including flat-panel TVs CRT replaced, including now some manufacturers have introduced LED LCD display. .</ P> <p> Luo Qingqi: I have just talked about the effectiveness of this policy, for example, I see Europe, North America, consumption of these two regions, in fact, the economic crisis, it's the whole electronics industry is the growth rate .fell sharply. .China in the last year or to maintain a relatively high growth rate. .This growth last year, I think the growth of the electronics industry from the rural areas, rural markets support this growth, and now the city's purchasing power is certainly very strong, stronger purchasing power of the city, and by the value higher. .If the policy started, you think about the amount of what would happen, I think this could be the turning point of the global electronics industry. .First, in our surrounding, such as Korea, Japan, the electronic power, but its domestic sales force is very weak. .Europe, North America, power is also waning. .If the Chinese city of trade-driven consumption, then this policy, the first section of China in the electronics industry throughout East Asia will be more stable position, while it will become one of the world electronics industry source of power. .This new generation, we may not realize. .Called for two, 20 years, the public has a clear understanding of this thing, if something is not bad, has been used, in fact, can not be used again. .State fiscal policy to support you now, companies have good technology and newer products, some products better design, plus the conditions are ripe, the 20-year product does not replace some of the family, and is the replacement of a variety of machines .We are basically five kinds of trade-in products: televisions, refrigerators, washing machines, air conditioners, computers. .The main object, there are no expansion of this category, such as mobile phones are not there, mainly family-oriented replacement. .If this were to replace the five categories, then this volume is very large. .The beginning of nine pilot provinces and cities, time is not long, more than 300 million, more than 700 million units, this quantity is great, very great. .</ P> <p> Moderator: Do you think the real impact of the current trade-promotion is the recycling of used appliances dismantling capacity, our country is now home appliance recycling dismantling industry needs the establishment and improvement of support and what .improve it? .</ P> <p> Luo Qingqi: This is mainly in the dismantling. .Why? .We often say that the matching upstream and downstream retail is a complete industrial chain, in fact, there are recycling, such as scrap steel, waste plastics, waste circuit board, and so such a thing, if our ability to dismantling relatively strong, and I .think that this will form a mechanism. .Such as family realized that the old machine can not be easy to use and then may lead to high energy consumption, or the fire that risk. .Through the promotion of this policy may be to implement a mechanism in the family, read the instructions, to the point necessary to change the machine. .Another one, focus on the replacement of large quantities of waste electronic products in China will promote the recovery, dismantling, this one, I think it will be very important. .It is to some extent reduce the cost of the entire electronic manufacturing industry, and why? .These materials can be recycled, you can do inside the Chinese market cycle in this region, such as plastic and come in, they come in iron and steel scrap. .</ P> <p> Moderator: Do you think how to ensure that our customers are now recovered through the normal channels of Jiu Jiadian recovery together? .</ P> <p> Luo Qingqi: this country is very good. .Tender, you can do a lot of TM's qualifications. .First determine the trade-in, and then determine the new machine, and then determine the recycling business. .Pull the old machine to send a new machine, and now promote very well. .</ P> <p> Moderator: How would you trade-in policy on the future development of China's home appliance industry, the impact of it? .</ P> <p> Luo Qingqi: I think the nature of our industry will drive changes in the structure. .TM is not to buy a new machine, the original technology is the case, and back to a new what? .Not the original older models, is an updated technology. .After the release of the consumer, equal to more extensive corporate earnings, companies may have the financial resources to do the introduction of this technology, technology R & D, do the adjustment of industrial structure. .</ P> <p> Moderator: a virtuous cycle. .</ P> <p> thank Luo wonderful explanation. .This program is over, next time! .</ P>.