On July 2, 2025, Guangzhou Lingnan Club Taoranxuan Catering Co., Ltd. announced that as a large upscale catering enterprise, they will close down on July 2 in order to comply with the tightening of the “institutional screws that require party and government organs to lead a tight life”, sparking lively discussions online.
On July 1, Chinese financial media person Cao Lei (Cao Shanshi) posted a screenshot on the social platform X, revealing the closure notice issued by Guangzhou Lingnan Club Taoranxuan Catering Co., Ltd. Public records show that Cao Lei had previously worked at Sina, as the head of the South China branch and the director of the Sina Financial Journalist Department.
Entertainment blogger and Weibo influencer “Dreamwork827” also shared the screenshot on Weibo, commenting, “The tone of the closure notice from a certain catering company in Guangzhou is quite high,” and subsequently turned off the comment section.
Financial blogger “Xueyu Xifeng in Zhejiang” also uploaded the screenshot and commented with implied meaning, “The boss is bold.”
The announcement indicates that in accordance with the recent release of the “Regulations on Strict Economy and Opposing Waste in Party and Government Offices” by the Party Central Committee, the institutional screws requiring party and government organs to lead a tight life will be tightened.
As a highly socially responsible enterprise, Guangzhou Lingnan Club Taoranxuan Catering Co., Ltd. “resolutely supports the Central Party’s decisions,” especially as a large upscale catering enterprise, in today’s era of promoting hard work, thrift, and savings, “high-end consumption is no longer in line with the urgent demands of the times.”
Thus, after careful consideration, the company officially ceased operations to the public starting from July 2, 2025.
The company will prioritize maintaining social stability and make efforts to secure support and guidance from relevant government departments to properly resettle all employees affected by the closure, establishing a company task force to handle the relevant procedures for ceasing production and closing down.
The notice is dated July 1, 2025.
This news has sparked discussions on the internet.
Netizens commented, “It’s almost as if the notice would mention that previously the restaurant’s customers were mostly leaders from various departments in Guangzhou and Guangdong.” “There is a sense of discontent between the lines.” “To be able to resist selling lunch boxes. Quite courageous.” “Under the wise leadership and guidance of the Party, the catering company has successfully closed down.” “Crack down on education centers, games, then hotels.”
“These middle to high-end eateries are mostly within the system.” “Clearly indicating that it is usually government officials who regularly patronize them.” “It’s confirmed to be true. This is a Michelin-recommended Cantonese cuisine chain.”
“With such a large number of employees in the catering industry and related sectors, consumption has been declining in recent years, and now with this closure, even more people will lose their jobs.”
On May 19, the Chinese Communist Party’s mouthpiece, the People’s Daily, published an article by a commentator stating that the newly revised “Regulations on Strict Economy and Opposing Waste in Party and Government Offices” by the Central Committee and the State Council is an upgraded version of the anti-waste system, further tightening the institutional screws requiring party and government organs to lead a tight life, ensuring limited financial resources are used prudently. The new regulations impose new requirements on saving in official travels, receptions, and holding meetings, such as prohibiting organizing overseas research and learning activities, banning mutual expenses of organizations, avoiding unnecessary exhibitions, forums, sports events, and meetings, implementing a system of responsibility for opposing excessive waste, and seriously holding accountable those who tolerate waste.
Radio Free Asia reported that independent Chinese political scholar Chen Daoyin stated that history shows that similar documents were issued in the past during times when the Chinese economy was faltering or facing major issues.
Public records show that Guangzhou Lingnan Club Taoranxuan Catering Co., Ltd. was established in 2011, under the umbrella of Fuquan Decoration, mainly engaged in accommodation and catering businesses. The company is relatively large, with approximately 600-699 employees.