China auctions ‘anti-corruption’ gifts turned in by officials

Luxury gifts turned in by government officials, including expensive liquors, designer brand clothes, watches and jewellery, were auctioned off in Wuhan, capital of central China’s Hubei Province, last weekend – the result of continued efforts to clamp down on corruption.

A bottle of Wuliangye Baijiu (photo credit: Wuliangye)

According to reports local official newspaper Hubei Daily, all the items that went under the hammer were collected over a two-year period since 2014, when the province introduced a new rule that allows officials to voluntarily turn in gifts that could compromise their position within one month to avoid investigation.

The liquors auctioned were categorised into domestic and imported categories. Nine bottles of Wuliangye, a famous Chinese Baijiu brand, were sold for RMB 3,770 (about US$545), much lower than its market price. Baijiu, a sorghum-based liquor, was a popular gifting choice to officials.

A bottle of top Baijiu from Maotai made in 1992 was sold for a record of RMB 8.9 million (about US$1.3 million) in 2011 before the anti-corruption clampdown started in 2012.

All the items sold were in fact were priced lower than their market prices, and the reason, explained by a local auction house hosting the event, is to attract local residents and to avoid them circling back into hands of officials. Other lots include a 100-gram pure gold necklace from Chow Tai Fook, iPhones, Givenchy blouses, art pieces and Sony cameras.

China’s anti-corruption clampdown, initiated after Xi Jinping took power, has adversely hit sales of wines and spirits and other luxury goods as expensive gifting to officials and business executives has declined.