France's Wine, Spirits Export the Latest Victim of China's Corruption Crackdown
Ren Benavidez | | Sep 10, 2014 11:48 AM EDT |
(Photo : REUTERS) China's President Xi Jinping
China's strict enforcement of its anti-extravagance law has greatly affected France's wine and spirit industry as exports dipped by more than 7 percent during the first semester of 2014, a trade body reported on Tuesday.
In a report released by the Federation of French Wine and Spirits Exporters (FEVS), china's purchases, which used to be within the high-end range, suddenly dropped during the first few months of 2014.
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Although China is France's fifth best foreign clients, its purchases fell by six percent in volume, which is one-third of its usual value, FEVS said.
In a statement released by FEVS deputy head Pierre Genest, he said China's corruption crackdown, which began in 2013 has greatly hit the highest value-added export products like the Bordeaux wines and cognacs.
Chinese President Xi Jinping's decision "penalizes us even more because it was unexpected and we did not anticipate it, and because it targets the best-valued products."
The anti-corruption and frugality drive was implemented last year when President Xi Jinping took office.
Under the policy, corrupt officials and bureaucrats have been targeted, sending a number of guilty parties to prison.
Meanwhile, China's mooncakes have also been hit by the anti-corruption campaign.
Sales of the mooncakes have dropped this year since the campaign prohibited the giving of the pastries to officials, which was once a common bribery practice.
Mooncakes wrapped in gift boxes adorned with jewels and special spaces for putting cash or wines has been a usual tradition among officials and has caused the sales of the pastries to surge.
However, following the implementation of the anti-graft campaign, mooncake sales have dropped to about 30 percent in 2014, while the high-end mooncakes dipped more than 50 percent, according to Baking Professionals Committee at the Shanghai Food Association.
TagsAnti-corruption, chinese corruption, graft crackdown, wines and spirits industry
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