China caps spending on receptions for foreign dignitaries

China has extended its austerity campaign to receptions held in the capital for foreign guests, including Heads of State, fixing meagre amounts to be paid only by official cards instead of cash.
Beijing issued a new regulation to control expenses on receptions held for foreign guests to control waste and contain the budget for such events.
Expenses on such receptions should be paid through official cards or bank transfer. Cash will not be allowed and payments should come from departmental budgets, state-run China News Service reported.
Daily board expenses on each head of state and government leader should be no more than 600 yuan (about USD 100), and that for a vice-president, chairman or vice-chairman should be no more than 550 yuan, the regulation stipulated.

The new stipulation is being seen as drastic considering the practice of lavish receptions hosted for visiting dignitaries at the ornate Great Hall of People, where most foreign guests are entertained by the Chinese leadership.
Under the new rules, reception departments cannot host more than two banquets for foreign guests.

The guidelines mandate that departments publicise all details of spending on such receptions. They also set standards for other costs, including accommodation, gifts and transportation.
The new rules were part of an austerity campaign launched by President Xi Jinping after he took over the leadership in the once-in-a-decade transition last year.

The campaign followed by a crackdown on corruption was extended to all arms of the state, including the Communist Party of China and the military, which were prohibited from buying luxury vehicles and hosting expensive banquets.
The campaign came amid a steady drop in China's GDP from double digits to about 7.7 per cent last year. It is expected to slow down further this year.