Beijing21 minutes ago
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In China, expensive food, alcohol and cigarettes will no longer be served in the office.
The government in China has directed its officials to reduce the expenditure on liquor and cigarettes. Along with this, spending has also been asked to cut travel, food and office places.
This decision has been taken by President Xi Jinping and Communist Party to reduce government expenditure. In China, expensive food, alcohol and cigarettes will no longer be served in the office. The program will not decorate grand flowers.
According to China’s Xinhua News Agency, the Communist government of China has demanded strictness and savings on the officials.
In which the authorities have been asked to use government resources carefully and stop extravagance. The government has described the extravagance and savings as embarrassing and respectable.
Chinese President Xi Jinping meeting people during a program.
Shares of liquor making companies declines
In recent times, the profit from land sales in China has decreased and the local government has had a huge debt. According to a Bloomberg report, the local governments of China have a debt of about 9 trillion US $ (770 lakh crore rupees).
Earlier in 2023, President Xi Jinping had campaigned against corruption and showing by officials. In which the government had directed the officials to make a habit of cutting spending.
According to Bloomberg, in 2024, Beijing launched a campaign to reduce the risks related to the loans of local governments. So that the risk of default is reduced and local governments can help in economic development.
The impact of the instructions for the cost cut also showed on the stock market. On May 19, China suffered the most loss in consumer goods shares, with the CSI 300 index sub-group down 1.4%. The stocks of Queto Mutai Company (famous Chinese liquor manufacturer) and Luzhou Laoziao company also declined by 2.2% and 2.6%.
Emphasis on new incentive package and consumer expenditure,
- In 2025, the Chinese government launched a 30-point plan to promote consumer expenses. This includes steps such as increasing people’s income, improvement in minimum wages, and subsidy for children care.
- It aims to boost people’s confidence and encourage expenses, as real estate crisis and unemployment have reduced consumer expenses.
- The government plans to increase the budget deficit to 4% for 2025, which is the highest since 1994. With this, the target is to increase the sale of special government bonds from 1 trillion yuan to 3 trillion yuan. This will help local governments to repay loans and economic development.
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