Local governments in China have entered a 'savings mode' ahead of the National Day holiday, which runs from October 1 to 7. Instead of purchasing new flags and floral decorations, they are reusing items from last year to cut costs. This move comes as local finances deteriorate and the central government emphasizes frugality.
According to the Chinese online media outlet Pengpai News, Zhengzhou, the capital of Henan province, is cleaning and repairing last year's flags and decorations for the holiday. The city's flag recycling rate exceeds 30%, with some districts using 80% recycled flags this year.
In Hubei province, most of the 7,300 flags displayed in public spaces such as roads, overpasses, and parks in Shiyan city were reused from last year. Leshan city in Sichuan province also decorated for National Day by recycling flowers. Meanwhile, Jinhua city in Zhejiang province is reusing existing flower beds and seasonal blooms to save costs.
This trend reflects recent directives from Chinese authorities to reduce unnecessary expenditures amid local government financial difficulties.
The central and local budget plans released during the March Two Sessions emphasized the need for government agencies to practice 'tight living' and simplify various festivals, exhibitions, and forums.
In a commentary published on September 29, the state-run magazine Banweitan noted, 'Some regions are reusing flags, flowers, and decorations instead of redecorating for National Day, and celebrating the holiday modestly is not about diminishing the atmosphere but rather focusing resources where they are needed.'
This shift comes as local governments face financial pressure due to a prolonged real estate slump, which has led to a decline in land transfer revenue and increased debt burdens. According to the Ministry of Finance, revenue from the sale of state-owned land use rights fell by 31.5% in the first half of this year compared to the same period last year. At the same time, the demand for public services such as healthcare and transportation is rising due to an aging population, further straining local government budgets.
However, there are concerns about emphasizing 'savings mode' at a time when local governments need to stimulate domestic consumption during the National Day holiday. Hu Xijin, former editor-in-chief of the Global Times, pointed out that local governments should focus on increasing citizens' incomes and boosting consumption to create a solid economic foundation for a 'happy National Day.'
The National Day holiday is one of China's peak consumption periods, alongside the Spring Festival. With the Mid-Autumn Festival holiday on September 25, travelers can enjoy an extended break of up to 13 days.
According to the Ministry of Transport, an estimated 2.13 billion trips will be made during the National Day holiday from October 1 to 7, averaging about 300 million trips per day.
Reuters reports that while the number of travelers is expected to reach record levels during this long holiday, it remains uncertain whether overall consumer spending will significantly increase amid a stagnant economy. Last year, although the number of travelers rose, the average spending per person was 911.04 yuan (approximately $126), marking a three-year low.
Meanwhile, President Xi Jinping emphasized robust economic growth and technological innovation ahead of the National Day holiday, reiterating confidence in China's development. According to state-run Xinhua News Agency, in a speech at the reception for the 77th National Day on September 30, Xi stated, 'This year, the Chinese economy has shown strong resilience and vitality, advancing despite pressures and achieving new directions and qualitative improvements.'
* This article has been translated by AI.
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