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The Home Appliances to the Countryside Scheme, as one of important Chinese pro-farmer policies, is conducive to improving the consuming capacity of farmers, promoting the upgrade of rural consumption and increasing the living and working conditions of farmers. Additionally it will enable them to enjoy the benefits of economic and social development as fast as possible, while it will help to stimulate rural consumption, expand domestic demand and promote economic growth. According to the forecast by the relevant departments, Four-year financial subsidies accompanied with the policy are expected to realize household appliance sales of 600 million units (pieces), stimulating domestic consumption of RMB 1.6 trillion yuan. Nowadays, China's rural household appliance penetration rate is only equivalent to the urban average level in the late 1980's. Related statistics shows that in 2007, the number of rural households’ color TV sets is about 2 / 3 of urban ones in terms of per 100households, washing machines and mobile phones less than 1 / 2 and the refrigerators only 1 / 4. Chinese government is scheduled to take four years to narrow the gap about ten years between cities and rural areas in terms of household appliance penetration rate. Through the financial subsidies, a long-term platform will be established to stimulate rural consumption, by which the process of agricultural modernization will be speeded up, farmers’ income will be increased and technology and information exchange of inland farmers will be greatly enhanced. China's vast consumer market in rural areas serves as not only a powerful driving force of China's development, but a emerging market where excess industry capacity could be released and technical costs be diluted as well.
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