09 November, 2013

How China's Anti-Corruption Campaign Hurts a Liquor-Producing Town - Adam Century - The Atlantic

How China's Anti-Corruption Campaign Hurts a Liquor-Producing Town - Adam Century - The Atlantic:

But Moutai’s exorbitant price—roughly $300 for a premium bottle—combined with its longstanding links to China’s governing elite have made it an ideal target in President Xi Jinping’s mounting campaign against corruption and extravagance. Though Moutai is officially recognized as China’s “national liquor,” often served at state functions, it is priced beyond the reach of average consumers. And because of this high price, Moutai commonly used a currency in bribes, prompting the popular saying: “Those who buy Moutai never drink it, while those who drink it never buy it.”

Nowhere have the effects of Xi’s anti-corruption campaign been felt more acutely than in Maotai village. Dozens of baijiu shops that line National Liquor Avenue, the town’s main commercial street, are now shuttered. A local vendor with the surname Zheng estimated that one-third of these shops have gone bankrupt since Xi came to power. In 2012, local GDP growth in Maotai village declined for the first time in more than 20 years; it is expected to fall further in 2013.