The Anti-corruption Crusade? Starting With Chinese Champagne

The battle against privilege – part of the greater war on corruption – is having a direct effect on the stock market. Such was the case with Kweichow Moutai, who saw its stock price drop by 5.5% on the Shanghai Stock Exchange over Christmas. The day before, the Central Military Commission issued an order to representatives of its armed forces to avoid making representative expenses; now, luxurious banquets, spectacular events, and any representative expenses are prohibited. The measure specifically mentions the use of Moutai, which becomes drastically reconsidered. Venerated as a traditional delicacy, the sorghum liquor is to China what cognac or Champagne is to the West. Its production is widespread in agricultural areas, and can be found on the tables of the most important receptions. No dinner with foreigners can end without a traditional Moutai toast. It is from the very proliferation of luxury and convivial gatherings that the producers of Moutai have reaped great economic benefit (Kweichow Moutai is also state owned). The price of a bottle of the liquor has grown exponentially in recent years, the higher quality brands being driven by insatiable demand. Only two days later, the CCP Central Commission of Discipline Inspection upped the dose with the same objective. It banned all expenses that could possibly raise suspicion of personal use of public funds for the period spanning from Christmas to the Chinese New Year in February. Public officials of the CCP are forced to avoid reward vacations, the use of official vehicles, personal favors, gambling, and any kind of lifestyle that is not in keeping with their standard salaries. The citizens of the web, or Netizens, have applauded the two measures. Widely used social networks interpreted the moves as examples of the commitment of the new leadership to defeating inequality and corruption in at least its most evident forms. In fact, since the end of the XVIII Congress, the leadership has not been exempt from severity. High level managers have been sacked, others are under judiciary investigation. The difference with respect to the past is not the existence of corruption, but the difficulty in hiding it from public opinion on the internet. It has become difficult to bury private interests in official acts. The CCP at the highest levels of leadership is well aware of the situation, but there is a new effort to contain it. With this objective, the protesting citizens are not a target, but an investigative ally. The intellectuals that fight for a reformed social model are not always dangerous dissidents. Sometimes certain instruments can appear that are able to ignite a debate at even the highest levels. Ambush journalists are friends of investigations, capable of exposing irregularities where the inspectors of the Party are unable to reach. The scene within this unprecedented frame is changing and encountering unexpected situations: the CCP is now leaning on civil society to combat its most unpopular managers. As a consequence, even the simple prohibition of an expensive alcohol can have economic and political repercussions. Xi Jinping has made a great start against corruption, every day more privileged heads are rolling to great media coverage, and it is everyone’s hope that it will be the beginning of real change and not a Christmas promotional campaign.