No Booze, Cigarettes, Gourmet Dishes: China Orders Officials To Cut Costs Amid Economic Headwinds

8 hours ago

Last Updated:May 20, 2025, 11:58 IST

The Communist government urged officials to practice strict diligence and frugality, advising them to spend public resources cautiously

China President Xi Jinping

China President Xi Jinping

The Chinese government asked its officials nationwide to reduce unnecessary spending on travel, food, and office space, signalling President Xi Jinping’s push for austerity as economic challenges strain government budgets.

According to the official Xinhua News Agency, the government and the ruling Communist Party issued a notice to officials targeting spending on gourmet dishes, alcohol, and cigarettes.

The Communist government urged officials to practice strict diligence and frugality, advising them to spend public resources cautiously and reduce extravagance, describing waste as shameful and economic prudence as admirable.

In line with President Xi’s campaign against corruption and ostentatious displays of wealth, the government instructed officials in late 2023 to “get used to belt-tightening."

China has recently experienced a decline in revenue from land sales, while local governments are reportedly grappling with a significant debt burden.

In response, Beijing launched its most extensive initiative in years in 2023 to tackle local government debt risks, aiming to reduce default threats and create fiscal space to support economic growth, according to Bloomberg.

The latest directives reinforce President Xi’s ongoing campaign urging officials to curb spending, as shrinking land sale revenues continue to strain government budgets.

Cai Qi, a member of the Communist Party’s influential seven-member Politburo Standing Committee, urged officials in Hebei province on Saturday to curb “extravagant eating and drinking," according to the official Xinhua News Agency.

President Xi first launched the cost-cutting campaign in 2012 as part of a broader effort to eliminate government corruption.

The campaign was revived during this year’s legislative meetings in March, as officials committed to boosting the economy by directing more financial support toward the public.

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