China politics and policy updates
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As Beijing struggles to respond to rising anger over allegations of female sexual assault, China is working to suppress the culture of alcoholism after get off work.
The Central Commission for Discipline Inspection, the anti-corruption monitoring agency of the Communist Party of China, stated that, according to comments on its website, stressful drinking can lead to crime, and this practice should be replaced by “correct values.”
In addition, the Ministry of Culture stated that it plans to prohibit karaoke establishments from spreading “harmful information” songs. These include lyrics that are said to inspire listeners to take drugs, gambling, and religious beliefs, as well as content deemed to endanger China’s sovereignty. Encourage companies that provide songs to venues to flag lyrics that may be problematic.
The crackdown on misconduct is the latest in a series of measures Regulatory action Has framed Chinese companies, including some of the country’s largest technology and gaming companies, and Stinging global investors.
Before CCDI issued the warning, someone accused a manager of the technology group Alibaba, Sexual assault An employee. The manager was subsequently fired, but this incident revealed the corporate drinking culture.
CCDI’s comments shook the stocks of liquor companies.Share price of Kweichow Moutai, the world’s largest liquor producer baijiu, Fell 2.7% on Wednesday. The share price of Shanxi Xinghuacun Fenjiu, another liquor maker, fell 2.49%.
According to internal company news shared on the Chinese version of Twitter, an intern at the technology group Tencent called on the company to ban socially stressed drinking.
Tencent President Andy Lau said that the proposal will be transferred to the human resources department. He added that the company has zero tolerance for any form of sexual harassment.
“One consequence of the MeToo incident is that we may strengthen the supervision of entertainment,” said Thomas Gatley, an analyst based in Beijing of the research group Longzhou Jingxun.
Ng Jun Ying, an analyst at Fitch Solutions, pointed out that Beijing has not yet confirmed the new regulations regarding the alcohol industry. “In a very short period of time, as Chinese consumers hoard alcohol for emergencies, alcohol sales may soar,” he said.
“However, given recent developments, the authorities are likely to interfere in the entertainment industry,” Wu added.
Gartley said that the “intensity and tone” of the crackdown will be eased, and pointed out that there are signs of coordination between regulators to “provide a more stable and predictable policy environment for companies and investors.”
Gartley added that Beijing’s policymakers believe that this year is a good time to implement various structural reforms after the Chinese economy has recovered from the depth of the pandemic.
“This may initially be considered a statement focused on economic reforms [ . . .] However, in a period seen as a good opportunity to make some painful changes while things are going well, it is not surprising that these other regulatory priorities have been raised and accelerated,” he said.
Additional reporting by Sherry Fei Ju and Ryan McMorrow in Beijing