The communist government of China is trying hard to rein in the capitalist economy. The rapid growth of the economy is adding to the national wealth and creating millionaires by the dozens. The increasing demand for luxury products has made all the global luxury brands to focus of the China market to optimize their share of the market. Their promotions and outdoor advertising puts the spotlight on the widening wealth gap in the country.
Instead of going to the root of the problem the government there first wants to move the problem out of the lime light. The government in Beijing has banned outdoor advertising that promotes hedonistic or high end lifestyles. The deadline given to the business is April 15 by which time all ads that excessively promote “foreign” things must be corrected or removed. According to the government these promotions create a politically unhealthy climate.
Companies or agencies not falling in line will face up to 30,000 yuan ($4,600) in fines. Words like Supreme, Royal, Luxury, high class cannot be used in any promotional communication. Chongqing, another mega city in southwestern China is following similar pattern of enactment and control the language used in promotional campaigns. The high inflationary pressures have brought the problem of widening income gap on centre stage. Premier Wen Jiabao has resolved to correct the unfair income distribution through a state economic plan by 2015.