By Lucas Peng Lu '16

On March 5, 2014 at the annual parliamentary session in Beijing, President Xi Jin Ping reiterated that the government has zero toleration for corruption. Since coming to power, Xi Jin Ping has launched an extensive internal reform to assuage public discontent with corruption and conspicuous spending among government officials. As a result, 17,000 government members have been removed from their positions for violating Xi’s frugality measures. The new government measures include banning excessive spending on receptions, use of governmental vehicles for personal reasons, spending on government projects, and use of public funds for unnecessary travels in China and abroad. While these measures are designed to improve the political system, they have also had unexpected ripple effects on the economy.

The catering and banquet industry, involving thousands of hotels and restaurants, is widely recognized as a key consumer sector in China. Prior to 2013, the industry was rapidly growing at double-digit figures due to public offerings.