China’s economy is battling a barrage of challenges, including a deepening housing slump, fears of a deflationary spiral and high levels of youth unemployment. As China grapples with a myriad of economic challenges, the government is taking significant steps to tighten its belt, particularly among public officials. Amid concerns of an economic slowdown, soaring debt levels, and faltering consumer confidence, China is now enforcing a frugal lifestyle on its public servants in an effort to redirect resources toward more critical areas of need.
In response to economic distress, characterized by a $2 trillion loss in stock market value since 2022 and debt levels nearing three times the national economic output, Chinese authorities have initiated widespread budget cuts across provincial governments.For instance, the governor of Guizhou province has pledged to slash his administration’s operating expenses by 15%. Similarly, in Hunan, officials are urged to embody the spirit of “red housekeepers,” a term coined to inspire cost-efficient governance that honors the Communist Party’s revolutionary roots, a Wall Street Journal report said.
Drastic measures in everyday governance
The campaign for frugality has resulted in various stringent measures aimed at curbing unnecessary spending. In Yunnan, for instance, a directive has been issued to set air conditioning thermostats no lower than 26 degrees Celsius (79 degrees Fahrenheit) during summer to save on electricity costs. Meanwhile, in Inner Mongolia, authorities are promoting the repair and reuse of office equipment like desks and chairs instead of purchasing new ones.
As per the WSJ report, in recent weeks, numerous local governments have rolled out comprehensive guidelines on how to “get used to living frugally.” These directives instruct staff to economize by utilizing public transport, opting for less expensive stationery, and printing documents in black-and-white and on both sides of the paper. Additional measures include directives for bureaucrats to consume all their food, reduce work-related travel, and extend the lifespan of resources by repairing and reusing everything from official vehicles to office furniture.
At a state-owned ironworks in Yunnan, party officials have called for a 30% reduction in annual drinking water expenses compared to last year’s expenditure of 270,000 yuan. The plant’s party committee issued a directive saying, “Strictly control the consumption of bottled water in each work unit,” and encouraged employees to use their own cups instead of disposable ones to further cut costs, the WSJ report said.
These austerity measures are part of a broader strategy to manage the economic fallout from three years of stringent Covid-19 containment measures and a slumping property market, which have severely depleted local government coffers. This fiscal tightening is further compounded by the reduction in land-sale revenues—a key source of income for many localities.
The frugality campaign aligns with Chinese leader Xi Jinping‘s broader efforts initiated in 2019 to curb government waste. This campaign not only seeks to alleviate fiscal pressures but also serves a significant political purpose, signaling the government’s commitment to sharing the burden of economic slowdown. Senior officials and state media have bolstered this message, appealing to public servants’ patriotism and framing frugality as a virtue that aligns with the Communist Party’s values. Historical references to past leaders’ simple lifestyles are frequently invoked to strengthen this narrative.
Despite these efforts, some experts, like Christine Wong, a visiting professor at the National University of Singapore’s East Asian Institute, view these measures as largely symbolic. They argue that the savings from such cuts are relatively minor compared to the broader challenges facing the Chinese economy, such as the need for substantial reforms in local government revenue generation and debt management. Critics contend that while these frugal measures may yield some savings, they do little to address the underlying structural issues that threaten China’s long-term economic stability, the WSJ report said.
(With inputs from agencies)
In response to economic distress, characterized by a $2 trillion loss in stock market value since 2022 and debt levels nearing three times the national economic output, Chinese authorities have initiated widespread budget cuts across provincial governments.For instance, the governor of Guizhou province has pledged to slash his administration’s operating expenses by 15%. Similarly, in Hunan, officials are urged to embody the spirit of “red housekeepers,” a term coined to inspire cost-efficient governance that honors the Communist Party’s revolutionary roots, a Wall Street Journal report said.
Drastic measures in everyday governance
The campaign for frugality has resulted in various stringent measures aimed at curbing unnecessary spending. In Yunnan, for instance, a directive has been issued to set air conditioning thermostats no lower than 26 degrees Celsius (79 degrees Fahrenheit) during summer to save on electricity costs. Meanwhile, in Inner Mongolia, authorities are promoting the repair and reuse of office equipment like desks and chairs instead of purchasing new ones.
As per the WSJ report, in recent weeks, numerous local governments have rolled out comprehensive guidelines on how to “get used to living frugally.” These directives instruct staff to economize by utilizing public transport, opting for less expensive stationery, and printing documents in black-and-white and on both sides of the paper. Additional measures include directives for bureaucrats to consume all their food, reduce work-related travel, and extend the lifespan of resources by repairing and reusing everything from official vehicles to office furniture.
At a state-owned ironworks in Yunnan, party officials have called for a 30% reduction in annual drinking water expenses compared to last year’s expenditure of 270,000 yuan. The plant’s party committee issued a directive saying, “Strictly control the consumption of bottled water in each work unit,” and encouraged employees to use their own cups instead of disposable ones to further cut costs, the WSJ report said.
These austerity measures are part of a broader strategy to manage the economic fallout from three years of stringent Covid-19 containment measures and a slumping property market, which have severely depleted local government coffers. This fiscal tightening is further compounded by the reduction in land-sale revenues—a key source of income for many localities.
The frugality campaign aligns with Chinese leader Xi Jinping‘s broader efforts initiated in 2019 to curb government waste. This campaign not only seeks to alleviate fiscal pressures but also serves a significant political purpose, signaling the government’s commitment to sharing the burden of economic slowdown. Senior officials and state media have bolstered this message, appealing to public servants’ patriotism and framing frugality as a virtue that aligns with the Communist Party’s values. Historical references to past leaders’ simple lifestyles are frequently invoked to strengthen this narrative.
Despite these efforts, some experts, like Christine Wong, a visiting professor at the National University of Singapore’s East Asian Institute, view these measures as largely symbolic. They argue that the savings from such cuts are relatively minor compared to the broader challenges facing the Chinese economy, such as the need for substantial reforms in local government revenue generation and debt management. Critics contend that while these frugal measures may yield some savings, they do little to address the underlying structural issues that threaten China’s long-term economic stability, the WSJ report said.
(With inputs from agencies)
