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China has banned TV and radio advertising of the kinds of luxury products commonly given as gifts to officials during the Chinese New Year, reported official state media.
The new law is likely to have the biggest impact on advertising of pricey watches, gold coins, imported liquor and luxury accessories. The ban is intended to promote the government’s efforts to discourage the kind of extravagance that focuses unwanted attention on the widening wealth gap between urban business people, officials and professionals, on the one hand, and migrant workers and rural families, on the other.
Another key objective of the new regulation by the State Administration of Radio, Film and Television is to discourage the extravagant gifts given ostentatiously to officials — one of most visible sign of pervasive corruption. The practice of glorifying extravagance has promoted “incorrect values” and encouraged a decline in ethics, according to the official Xinhua agency.
The move is in line with declarations by new leader Xi Jinping that he intends to fight official corruption. He had already ordered an end to displays of extravagance at party and army functions.
As part of efforts to reduce the growing wealth gap the government recently announced that the minimum wage will rise to 40% of average urban salaries by 2015. That would represent a dramatic increase from current levels which are closer to 15-20% of urban salaries.
The wealth gap is seen as the second biggest threat to social stability after endemic official corruption.