CPC's frugality drive pre-holiday business affected

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PKG

INTRO

Wei Chunfeng, a Chinese printing house manager in Jilin province, feels a little bit disappointed these days.

Her greeting card orders have seen a steep decline, compared to the booming pre-holiday business she has enjoyed in years past.

Wei said this is partially due to a recent anti-extravagance ban issued by China's top disciplinary watchdog.

PKG

The end of year always used to be a busy time for card-printing factories as well as photo agencies.

But things are getting increasingly difficult for the businesses involved and they are receiving far fewer orders...

At the Changchun Easy Graphic Company, only a few printing machines are working...

SOUNDBITE (CHINESE) WEI CHUNFENG, Manager, Easy Graphic Company:

"We used to make more desk calendars and wall calendars, but this year it's much worse than it used to be. We don't know why... whether it is due to economic problems or subsiding demand."

Wei's drop in orders is partially the result of a ban issued earlier this month by the Central Commission for Discipline Inspection, or CCDI of the Communist Party of China.

It has barred officials from buying calendars, postcards and New Year cards with public funds.

Wei is not alone among Chinese printing house owners who have felt the strength of the CPC frugality drive.

Chinese people see holidays as a time to nurture bonds with friends, as well as a time to cozy up to government officials.

And items ranging from greeting cards to alcohol are the preferred gifts for officials or business partners.

Environmental authorities say the flood of greeting cards is not only financially wasteful, but also goes against the green and low-carbon intentions being championed across the country.

They say in order to produce 100,000 cards, 30 trees would need to grow for 10 years each.

A circular issued by the CCDI on Thursday urged officials not to exchange celebration items such as fireworks and firecrackers bought with public funds during the holidays.

During the one-week Lunar New Year holiday, which begins on January 31st in 2014, many Chinese set off fireworks and firecrackers to celebrate.

This is not the first time the CCDI has issued such regulations ahead of holidays.

Before the Mid-Autumn Festival in September and the seven-day National Day Holiday in early October, the CCDI issued a similar circular urging officials to refrain from throwing banquets and gift-giving.

SOUNDBITE: JIANG HONGQIANG, Crab breeding company

"Businesses that used to sell mitten crabs to government agencies or state-owned enterprises will certainly see their sales drop. But those that sell the crabs to ordinary citizens will not be affected as much."

In December last year, the Political Bureau of the CPC Central Commission issued a package of rules requiring officials to improve work styles and refrain from excessive spending.

According to the CCDI, about 16,700 people have been punished for violating the frugality guidelines.

Experts say the CCDI's pre-holiday bans show its resolution to combat corruption and curb luxuries.

And a strict government budget system is needed to boost transparency and eradicate such violations.

They suggest that accelerating fiscal and tax system reform and enhancing supervision over budgets could help resolve corruption and prevent waste.