CHINA will extend the home appliance trade-in program to December 31, 2011, to boost consumption and help the industry develop.

The program, previously available only in nine coastal regions, will be expanded to another 19 provinces and cities from June 1, the Ministry of Commerce said yesterday.

The policy will gradually be extended across the country, the commission said.

The home appliance trade-in program began on June 1, 2009, in Shanghai, Beijing, Tianjin and several coastal provinces on a trial basis.

Under the program, consumers could get a 10 percent refund on the price of a new home appliance when they recycle an old one - subject to maximum amounts.

Five categories - televisions, refrigerators, washing machines, air conditioners and computers - qualified.

"Over the past year, the program has achieved substantial effects on the economic level," said Vice Commerce Minister Jiang Zengwei. "Local government should take measures to get the maximum economic result from the policy."

As of the end of May, the government had handed out more than 5 billion yuan (US$732 million) in subsidies. Gome and Suning, the country's top two home appliance retailers, reported sales in the five categories jumped 94 percent and 62 percent year on year, respectively.

The home appliance industry defied the fallout of the financial crisis thanks to the program.

Industrial output in the sector jumped 31.26 percent from a year ago in the first quarter, compared with a rise of 3.28 percent in the same period in 2009.

"In the future, new categories will be added to the list based on the consumer demands," the commission said.