Xinhua Insight: Living with austerity - the change of the Chinese official

Gao, an official in north China's Shanxi Province, has noticed his colleagues dressing differently since the broom of austerity swept through the government two years ago.

"Flashy logos on bags are no longer seen in our offices. Few people wear designer brands at work," he says, somewhat embarrassed by his own watch, a conference souvenir.

TRIAL BY INTERNET

At a luxury mall in Taiyuan, the provincial capital, a few customers stroll ambivalently among expensive boutiques. Tianmei Mall's sales manager, Liang is dismayed. Sales, which used to boom in the run up to New Year, have dropped precipitously. Menswear sales are down by nearly 30 percent.

Liang takes Cerruti1881, a brand of men's fashion, as an example. "Few people even enter the boutique, let alone buy a suit."

Suits sold here cost as much as 30,000 yuan (4,900 U.S. dollars), even with a free sweater thrown in, few people seem interested. Previously the only free giveaway with the suit was a belt, and sales were good.

According to sales assistant Li, apart from obviously rich customers, officials who were clearly spending money that was not theirs also bought the clothes. "But now, these kind of officials appear less and less."

The eagle-eyes of China's legions of netizens notoriously zoom in on officials' clothes, jewelry, wrist watches or even the cigarettes dangling from official mouths, checking brands and posting their findings on the Internet. Finding examples of officials' dubious conduct has become almost a hobby for many. Debate on who paid how much for what are rife: Civil servants in China are not a high salary group.

"Brother Watch" Yang Dacai from northwestern Shaanxi Province was famously spotted wearing 11 different luxury watches in different photographs. Yang is now serving the second year of his 14 year prison sentence, his wealth confiscated and his family in penury.

Sociologist Guo Xinping of Shanxi University believes that a broad drop in luxury sales was inevitable when the frugality campaign started in December 2012. Extravagance among officials has been contained somewhat. Officials fear being named, shamed, fired or even imprisoned, let alone hauled over the coals by a rapacious public.

GRAFT GOES UNDERCOVER

Sales of jewelry, haut-couture and other luxury goods fell one percent last year, the first drop in eight years, according to Bain&Co. Sales of men's wrist watches were down 13 percent, men's fashion by 10 percent.

The Wall Street Journal published an article last Friday--China's Corruption Crackdown a Boon for Lingerie--saying, "Lingerie stores in China are seeing strong sales of 300 U.S. dollars bras and other pricey skivvies."

Has austerity brought "inconspicuous consumption"? Have government staff merely switched from flaunting their ill-gotten gains in public to the most intimate shows of wealth?

One online wiseacre said authorities need to hire an undercover agent, an "agent provocateur," or undercover agent, to root out corruption. "Agent Provocateur" is a well-known London lingerie company.

"Inconspicuous consumption" has been found everywhere, canteens become banquet halls, mineral water bottles are filled with expensive booze, private clubs are hidden in Buddhist temples. If only these officials would be so innovative in their work!

Gift cards have also gone undercover. These cards have been a key target of the campaign. They are tantamount to cash in shopping malls and can easily be exchanged for money through scalpers.

Wang, a courier, has delivered several "tiny" parcels recently. When opened, the recipients are delighted to find carefully wrapped gift cards in the dainty packages.

Gift cards with more than 10,000-yuan value are hard to find these days as government agencies are banned from giving cards to staff and graft-busters have specifically targeted "gift card bribery".

Only small-value cards are on sale at a shopping center in Haikou, capital of the southernmost island province of Hainan. Sales assistant Wen says sales dried up as the anti-graft picked up speed. Buying these cards now requires real-name registration.

Meanwhile, the many-headed Hydra of corruption has taken sales of high-value cards into the virtual world. Almost anything can be bought or sold online in e-commerce-crazy China. Nothing is easier or more inconspicuous to deliver than a small square of plastic. Scalpers are hanging around shopping malls less and less. To "recycle" cards they simply go online and exchange cards for cash via e-payment.

Even traditional Spring Festival red-envelopes have become virtual. Just one tap on the mobile app, and you can sent money to others in "an electronic red envelope".

BEING GOOD OR LOOKING GOOD?

Xiaoxue runs a hairdressing salon in the city of Linjiang in Jilin Province. The salon is close to several government agencies. Xiaoxue's business once flourished with frequent visitors by government workers.

"They often came in during the day, sneaking away from their work. Some of them even brought friends or guests and spent lavishly at my salon. Did they use their own money? I don't think so!" she said.

Since last year, Xiaoxue's daytime business has dwindled. A former customer told her that they are forbidden from idling and sneaking off by more strict rules and supervision.

"One customer got out the chair with her hair only half done and went back to the office immediately after her colleague phoned her," she said.

Frugality rules prohibit lavish banquets and "work discussions at the banquet table" Many civil servants report that they now have more time to spend with their families and can dine with their loved ones instead of boozing with bureaucrats and business associates.

Even doctors are seeing fewer patients with intestinal complaints, perhaps partly due to an austerity campaign that prevents unnecessary gluttony.

A total of 71,748 officials were punished in 2014 for breaking the eight point anti-graft rules.

Huang Shuxian, deputy head of the Party's top discipline watchdog, plans to "carefully examine" these new vectors of bribery and punish whoever is found breaking the rules. Only cooperation between Internet operators, finance departments and anti-corruption departments can expose hidden corruption. Endit