Part 3/9:
Increased scrutiny on public spending indicates a hallmark of the current times, as the state seeks to instill a culture where “waste is shameful and economy is honorable.” However, while these initiatives might resonate with the ideological aims of the government, analysts caution that they may inadvertently stifle consumption in key sectors such as luxury goods and dining. Despite the attempts to control local spending, the root of China’s fiscal problems runs deeper, demanding substantial structural reforms rather than mere regulatory adjustments.