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The new document is the first attempt to legalise new rules pushed by the Chinese leadership to rein in corruption in the second largest economy in the world.
The outline of the regulation suggests it will cover extravagant “official travel, receptions, meetings, official vehicles and buildings”.
A statement issued by China’s State Council (Chinese Cabinet) said the regulation is in line with reforms announced at the recently concluded Third Plenary Session of the 18th CPC Central Committee.
Party and government institutions must insist on frugality and strictly control spending on official affairs, says the statement.
The administration will cancel official cars for general use and will only keep “necessary official vehicles for law enforcement, confidential communications, emergency services, special and technical needs”.
State institutions have also been asked to be transparent in their spending and publicise in detail their use of funds, assets and public resources.
Government buildings, which have come under severe criticism for their luxury and wasteful grandeur, cannot be built as city landmarks, according to the new law.
In March this year while assuming office, Chinese President Xi Jinping told the nearly 3,000 delegates gathered at Beijing’s Great Hall of the People that his government would “resolutely reject formalism, bureaucratism, hedonism and extravagance, and resolutely fight against corruption and other misconduct in all manifestations.”