China orders officials to curb alcohol, cigarette spending amid Xi Jinping’s austerity push

May 20, 2025 02:50 AM IST

The rules echo Xi’s call to slash official spending as land sale revenues fall and local governments grapple with massive debt and tighter budgets.

China 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 economic headwinds strain government budgets.

The notice issued by the government and ruling Communist Party also covered outlays on receptions and alcohol and cigarettes. (File)(REUTERS)

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 Sunday.

It calls for “strict diligence and thrift, and opposes extravagance and waste,” Xinhua said, adding that “waste is shameful and economy is glorious.”

A measure of consumer staples stocks was the biggest loser among the benchmark CSI 300 Index’s sub-groups on Monday, slumping 1.4%. Kweichow Moutai Co. retreated 2.2%, the most in six weeks, and Luzhou Laojiao Co. lost 2.6%.

The rules amount to a reiteration of Xi’s campaign for officials to cut spending as a drop in revenue from land sales limits budgets and local governments confront a huge debt burden. The central government told officialdom in late 2023 to “get used to belt-tightening,” reinforcing Xi’s campaign to rein in corruption and displays of wealth.

Last year, 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.

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