Rural home appliance subsidy expires (2)

"We have prepared for the expiration of the program, and are currently turning our focus to the ongoing subsidy program for energy-efficient home appliances," said the spokesperson for air-conditioner maker Chigo, as quoted Wednesday in the Beijing News.

In June 2012, China launched a one-year subsidy program for buyers of five types of energy-saving home appliances such as air conditioners, refrigerators and flat-panel televisions, as part of the country's efforts to save energy and stimulate domestic demand.

Zuo said small home appliance companies will be affected more than large ones by the expiration of the rural subsidy program.

"With neither the subsidy nor well-known brands, they will lose their appeal to rural consumers," he said.

The expiration of the rural subsidy program marks the end of a raft of stimulus policies, including an old-for-new home appliance subsidy program, launched amid the global financial crisis.

But industry experts said there is no need for the government to continue the rural subsidy program.

"The rural subsidy program sets a low standard for appliances and does not encourage technological innovation. For instance, many low-end home appliances such as CRT TV sets have been dumped into the rural market over the past few years," said Liang Zhenpeng, a Beijing-based independent home appliance analyst.