{"id":153679,"date":"2013-03-28T05:57:14","date_gmt":"2013-03-28T12:57:14","guid":{"rendered":"http:\/\/chinadigitaltimes.net\/?p=153679"},"modified":"2013-03-28T05:57:14","modified_gmt":"2013-03-28T12:57:14","slug":"are-xi-jinpings-austerity-measures-working","status":"publish","type":"post","link":"https:\/\/chinadigitaltimes.net\/2013\/03\/are-xi-jinpings-austerity-measures-working\/","title":{"rendered":"Are Xi Jinping’s Austerity Measures Working?"},"content":{"rendered":"
Andrew Jacobs of The New York Times reports that China’s free-spending government elites – and the businesses that cater to them – are feeling the squeeze under new president Xi Jinping’s austerity directives<\/strong><\/a>:<\/p>\n While the power of the nation\u2019s elite remains unchallenged, the symbols of that power are slipping from view. Gone, for now, are the freshly cut flowers and red-carpet ceremonies that used to greet visiting dignitaries. This month, military officers who arrived here for the annual National People\u2019s Congress were instructed to share hotel rooms and bring their own toiletries.<\/p>\n \u201cCar-pooling feels so good because it provides a way to bond and chat with each other while saving money and increasing efficiency,\u201d one senior military official told the People\u2019s Liberation Army newspaper.<\/p>\n …<\/p>\n So far, most victims of the frugality drive have been purveyors of the good life: high-end caterers, abalone wholesalers, five-star hotels and makers of Yellow Pavilion cigarettes, the $300-a-carton brand coveted by up-and-coming bureaucrats.<\/p>\n The ripple effects have reached all corners of the economy. First-class airline ticket sales have dropped by a tenth in recent months, and luxury goods dealers have reported a 20 percent to 30 percent decrease in sales. Moutai, the $600-a-bottle gut-searing grain alcohol that is an omnipresent intoxicant at official banquets, has also seen its growth slow recently.<\/p><\/blockquote>\n Jacobs adds that while Xi’s campaign “seems aimed ad curtailing\u00a0the most conspicuous displays of wealth by people in power,” some doubt whether the calls for moderation will really make government less corrupt and more accountable. Furthermore, according to Patrick Boehler at the South China Morning Post, the drop in consumption has proved painful for Beijing businesses<\/strong><\/a>:<\/p>\n The clampdown on official\u2019s luxury spending has led to a \u201csignificant drop\u201d in high-end food and alcohol consumption, the 21st Century Business Herald wrote on Wednesday. Reporting on an internal meeting at the National Development and Reform Commission, the country\u2019s top economic planning agency, last week, the daily said the drop in luxury consumption due to austerity measures would drag down overall consumption figures, even though ordinary consumption is growing at a normal rate.<\/p>\n …<\/p>\n As an unintended consequence, luxury restaurants in downtown Beijing have had to change their business model, the Economic Observer wrote on Tuesday. Restaurants that previously catered exclusively for officials, who cherished their sumptuous privacy, now cater to the public. Some restaurants abolished expensive seafood dishes. For fear of repercussions, officials now head to Beijing\u2019s suburbs outside the fourth ring-road for their cherished banquets, the weekly reported.<\/p><\/blockquote>\n