The ‘Moutai barometer’: Chinese economy feels sting of booze ban targeting elite

In Renhuai city, home of China’s famous firewater liquor Moutai, the once-raging alcohol industry is in the grips of an economic hangover. Sales people are leaving in droves and small distilleries have gone bust, locals say, following a government booze ban that has targeted China’s elite.

Chinese officials and businessmen who love to banquet have stopped raising their glasses of Moutai after the government imposed an alcohol ban as part of an anti-corruption drive that directed them to live frugally on the public dime.

But the edict has ushered in austere times for a food and beverage sector already struggling with an economic downturn. It has also hobbled the government’s own efforts to get people to spend more to boost the economy, and has helped drag down the price of Moutai.

Offici