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China Asks Officials to Spend Less on Cigarettes, Alcohol and Travel; Here's Why

  • On May 19, 2025, China’s Communist Party and State Council issued new regulations requiring officials to cut spending on cigarettes, alcohol, travel, and official receptions nationwide.
  • These measures respond to mounting local government debt and declining land sale revenues, prompting President Xi Jinping’s intensified austerity campaign to curb corruption and waste.
  • The updated guidelines ban lavish banquets, alcohol at official events, luxury vehicle interiors, and decorative meeting venues, emphasizing strict diligence, thrift, and accountability within government bodies.
  • The central government reduced its funding for hospitality, transportation, and international travel in 2025 by 322 million yuan, bringing the total allocation to 6.124 billion yuan , while shares of consumer staples firms such as Kweichow Moutai experienced notable declines.
  • These regulations aim to reduce wasteful spending, strengthen oversight, and support economic stability by urging officials to adopt frugality amid ongoing fiscal pressures.
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Bloomberg broke the news in United States on Sunday, May 18, 2025.
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