According to the Associated Press, China is planning its own version of the Car Allowance Rebate System (a.k.a. " Cash For Clunkers") that jumpstarted auto sales here in the U.S. during the summer of 2009. The program will subsidize the turn-in of everything from city buses and farm equipment toward the purchase of new vehicles. Depending on the type of vehicle, owners may qualify for subsidies of 11,000-18,000 yuan, or about $1,700-$2,800 USD. China previously offered a similar program at the end of 2009, but it did not make allowances for trucks and buses, and incentives were smaller, averaging about $730.
After years of double-digit sales increases, April showed the nation's first sales decrease in two years, and recently new auto sales have shown signs of slowing down. Fresh sales figures for the month of May are due later this week.