In May 2025, the Chinese Communist Party (CCP) issued a so-called “strictest ever” alcohol ban, cracking down on “irregular eating and drinking” activities, which severely impacted the catering industry. Star hotels across the country had to set up booths for operations. Recently, Shaoxing in Zhejiang Province announced subsidies for consumers holding banquets in hotels. This move has been dubbed as a “reverse alcohol ban”, but the uncertainty of the policy has raised doubts. Analysts believe that under the extreme enforcement of CCP’s campaign-style policies, it could lead to a stalemate.
On September 2, Shaoxing, Zhejiang, held a press conference to introduce the upcoming “boosting consumption policy.” As part of the “supporting dining consumption” aspect, Shaoxing will provide subsidies to consumers holding banquets in hotels (with a minimum of 5 tables and a consumption of over 10,000 Chinese yuan), based on the tax-inclusive amount shown on the hotel sales invoice, with the maximum subsidy not exceeding 5,000 yuan (RMB).
This move has sparked heated discussions online:
– “It used to be strictly regulated before, banquets had restrictions, couldn’t be extravagant!”
– “Is the catering industry in a downturn? Shaoxing has made a move! This tactic is really clever.”
– “Hosting lavish banquets and receiving subsidies from the government, what kind of operation is this?”
– “This topic is worth discussing, the rationality of government subsidies for banquets raises deep thoughts.”
– “From ICU to KTV, every turn is unexpected.”
– “Subsidizing consumers with banquets of 5 tables or more and a minimum consumption of 10,000 yuan, does this policy encourage high consumption?”
An article by the mainland Chinese self-media “Lu Jie” pointed out that under the detailed regulations of Shaoxing, banquet parties with 5 tables or more and a minimum spending of 10,000 yuan can receive subsidies. In simple terms, as long as you eat a lot within the specified range and swipe your card vigorously, the government will give you money. Does it sound like a “reverse alcohol ban”?
The author mentioned the recent alcohol ban, which caused a cold wave in the hotel industry, leading to the cancellation of wedding banquets, graduation banquets, and most importantly, official receptions disappearing from agendas. Some places even stipulated that “any gathering of three or more people must be reported,” while others required even private holiday gatherings to be registered.
The author mentioned that those who have been in the hotel industry for a long time know that the success or failure of the business often depends on a subtle atmosphere. At the end of June this year, state media touted “to stop irregular eating and drinking, not all eating and drinking is irregular,” stating that “rectifying irregular eating and drinking is not a temporary action, it cannot be a blanket approach.” By the end of July, the news of the “Rongchang district secretary in Chongqing dining out” was trending. Now it’s the turn of local governments to invite everyone back to dine in hotels.
Why did Shaoxing take the lead in launching the hotel banquet subsidy? The author believes that Shaoxing is one of the cities where the trend of “high-star hotels setting up street booths” started this year. With the impact of the alcohol ban, many large hotels in Shaoxing joined the street vendors. Behind the collective action of high-star hotels in Shaoxing setting up stalls is the fact that high-star hotels with a positioning towards the middle and high-end market are going through tough times.
The author believes that in the environment of rectifying “irregular eating and drinking”, Shaoxing is footing the bill for banquet consumption, which may be labeled as “not adhering to political principles”. They still need to strike a balance between policy and consumer spending. But if hotel dining consumption continues to shrink, chefs and waiters are laid off, local food suppliers and wedding service providers are also impacted, causing a chain reaction that ultimately affects the local economy.
The author questions how long this policy can be sustained. Because subsidizing hotels means financial expenditure, and the pressure on local finances is well known to all. Moreover, in recent years, many local policies change rapidly – today they cheer for boosting consumption, tomorrow they tighten approvals; today they reward consumption, tomorrow they suddenly cancel budgets. Businesses fear such inconsistent changes.
Since the CCP implemented the “alcohol ban” in May, the trend of star hotels setting up stalls has rapidly spread nationwide.
Commentator Xiao Yi previously wrote on Epoch Times that the CCP’s so-called “strictest ever” alcohol ban, which was supposed to tackle extravagance and waste of public funds, was actually a political movement. With the high pressure exerted by the authorities and successive enhancements by local governments, a mere ban has evolved into comprehensive control over personnel within the system. Officials’ work, gatherings, and social activities are all included in the management, affecting non-system groups as well, leading to further deterioration of the already struggling Chinese economy and local finances.
The article suggests that this storm of alcohol ban has expanded from anti-corruption to social control, from public office rectification to economic control, exposing the fatal flaws of the CCP’s “party controls everything” governance model. However, the authorities will eventually find themselves in a difficult situation. If continued high-pressure enforcement could lead to economic collapse and further morale collapse within the system; if the alcohol ban is lifted, it would be seen as a policy failure and compromise by the central government, jeopardizing its authority. The officials have dug a hole for themselves.