Everyone in China wants a bit of luxury in their lives. But having a luxury life (as a government official) could be that little bit harder with the news that Beijing has announced a complete ban of government splurges on luxury goods with public funds, starting from October 1.
The Jing Daily reports that the Chinese government has told its civil servants that they are to stick to “a frugal working style”, prohibiting them from using government funds to purchase luxury goods. Those who do not comply with the new regulations could be fired.
To do business in China, there is the red tape, not to mention the politics involved.. And then there is the understanding of traditions.
China is renowned for its gift-giving culture, but this could be a thing of the past for the Chinese government as they proceed ahead with this ban later this year.
In the past, spoils of their spending have included lavish banquets, luxury cars, expensive liquor, designer handbags and diamond-studded watches.
While some analysts speculate that a ban on government luxury spending will slow down luxury sales, which are already growing more slowly than last year, others expect “consumer censorship” to have a limited effect on high-end sales or entrenched bureaucratic behaviour.
The Jing Daily reported earlier in the year of similar high-profile announcements of government bans on luxury cars like Audis and BMWs, and plans to swap foreign brands for domestic ones, have had a limited impact on nationwide sales.
It’s become a brave new world out there.
Image credit: travlang.com
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