The Beijing Municipal Commission of Development and Reform recently released a plan on providing loan interest subsidies to further support equipment purchases and upgrades in key sectors.

The plan prioritizes support for eight sectors this year, namely technological innovation and R&D, strategic emerging industries, future industries, integrated development of advanced manufacturing and modern services, new infrastructure, public social services through social investment, upgrades to cultural tourism and retail spaces, and agriculture.

It is part of Beijing's efforts on continuously guiding and supporting equipment procurement and upgrades. Over the past two years, the city has been stepping up its commitment to implementing the policies of large-scale renewal of equipment and trade-in of consumer goods.

This policy, which will remain in effect through 2027, applies to equipment procurement and upgrade projects that are aligned with designated investment sectors, have executed signed loan agreements and equipment purchase contracts, and can contribute to fixed-asset investment.

Eligible projects may involve standalone equipment purchases or the equipment components within larger capital investment initiatives. In principle, projects must meet a minimum equipment purchase value of 5 million yuan ($69,600) to qualify.

According to the plan, eligible projects will receive interest subsidies of up to 2.5 percentage points. For loans with actual interest rates below 2.5%, the subsidy rate will not exceed the actual loan interest rate. The subsidy period is set at two years.

The municipal development and reform authority will leverage multiple channels to encourage companies to apply for subsidies as early as possible, so as to receive prompt approval and benefit. It will also guide financial institutions to increase funding support for equipment procurement and upgrades, ensuring broader policy coverage for businesses.