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CHINA BANS ALCOHOL & LUXURY DISHES FROM OFFICIAL MEALS

By Tony Zhu

26-5-2025



Source: Doubao

The Chinese government has banned alcohol, luxury dishes and cigarettes from official meals in new regulations announced recently.

The restrictions were set out in an update on the Chinese Communist Party’s eight-point rules first introduced in 2013 to crack down on official extravagance and restore public trust.

Issued on 18 May, the update include a sweeping ban on alcohol at official receptions. It also bar government agencies from disguising hospitality expenses under meetings or training budgets.

Share prices of top baijiu brands dropped about 2 percent on the news. Take for leading brand Kweichow Moutai, its market cap tumbled below the RMB 2 trillion (USD276 billion) threshold as an immediate response to the news.

However, industry analysts believed that the impact on the category will be minimal this time around compared to 2013 when the eight-point rules were first introduced.

Analysts said that government-related consumption of baijiu in China has shrunk substantially since 2013, accounting for less than 5 percent of the baijiu market, thus limiting the new regulation’s impact on the sector.

The China Daily has reported that a recent case relating to alcohol consumption by officials drew national attention in China when a county-level official in the central Henan Province died after consuming alcohol at a midday banquet during a training seminar in March.

Nine other officials present at this banquet were later disciplined, demoted or dismissed.

(the writer can be contacted at: info@thewinechronicle.com)

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