China tells officials to rein in alcohol, cigarette spending
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The notice also covered outlays on receptions and alcohol and cigarettes.
PHOTO: REUTERS
BEIJING – The Chinese government reminded officials around the country to cut wasteful spending on travel, food and office space, adding to signs of an austerity push by President Xi Jinping as the economy recovers.
The notice issued by the government and ruling Communist Party also covered outlays on receptions and alcohol and cigarettes, the official Xinhua news agency said on May 18.
It calls for “strict diligence and thrift, and opposes extravagance and waste”, Xinhua said, adding that “waste is shameful and economy is glorious”.
Consumer staples stocks were the biggest loser among the benchmark CSI 300 Index’s sub-groups on May 19, slumping as much as 1.7 per cent.
Kweichow Moutai Co retreated as much as 2.4 per cent – the most in six weeks.
The spending rules amount to a reiteration of Mr Xi’s campaign for officials to cut spending as a drop in revenue from land sales drains budgets and local governments confront a huge debt burden.
The central government told officialdom in late 2023 to “get used to belt-tightening”, reinforcing Mr Xi’s campaign to rein in corruption and displays of wealth.
In 2024, Beijing kicked off its largest effort in years to address risks from local-authority debt, a move aimed at cutting default risks and giving local governments room to support economic growth. BLOOMBERG
