China's National Development and Reform Commission (NDRC) announced Wednesday a detailed plan for the country's 7 billion yuan subsidy for auto and home appliance tradein.  The initial outline of the plan was announced last month in a move to spur domestic consumption, improve energy efficiency, and curb pollution. 

5 billion is allocated for trading in old and inefficient autos.  Individuals and companies who trade-in their used mid- and small-sized trucks and passenger cars for new ones will be subsidized from 3000 to 6000 yuan.

2 billion yuan is allocated for home appliance replacements, including TV sets, refrigerators, washing machines, air-conditioners, and computers.  This plan will start from 9 provinces and cities including Beijing, Tianjin, and Shanghai. Consumers who contact local recycling plants will receive pick-up service and qualify for a direct price reduction when buying the new appliances with vouchers from the plants.

According the officials at the NDRC, this new policy is consistent with early efforts to encourage rural consumption of motorcycles, automobiles, and home appliance.  This new subsidy is expected to replace 1 million used vehicles and 5 million home appliances, enhance total consumption of 100-120 billion yuan, recycle 2.3 million tons of scraps, and create 5 million jobs.