Shaoxing, a city in eastern China famed for its rice wine, is now offering cash subsidies to customers who host large banquets at hotel restaurants, the first city-wide policy of its kind aimed at boosting economic growth.

The new policy, announced earlier this month, offers up to 5,000 yuan ($690) to banquet hosts who book at least five tables and spend over 10,000 yuan. The measure is part of a 100-million-yuan stimulus package covering performing arts, nighttime economy, automobiles, and housing.

Banquet culture is central to Chinese social and professional life, where lavish meals mark milestones like weddings, academic achievements, and business deals.

In recent years, however, that tradition has come under strain. According to an analysis by the China Cuisine Association, catering revenue growth slowed in the first half of 2025, with nationwide figures down 3.6 percentage points from last year.

In Shaoxing, the downturn has forced many hotels to downsize and pivot to street stalls to make ends meet, with even the city’s five-star Xianheng Hotel setting up a roadside stand to sell local delicacies.

With the new banquet policy now in place, city officials hope to revive consumer spending and lift the broader local economy. Hong Kong-based Phoenix TV commented that the banquet business “will significantly increase hotel table revenue and customer traffic once it recovers, thus helping the industry get back on its feet.”

On lifestyle platform Xiaohongshu, also known as RedNote, users dubbed the initiative a “Reverse Alcohol Prohibition,” contrasting it with a May regulation that strictly banned extravagant dining among government officials.

Beyond dining, Shaoxing’s stimulus package includes expanded tax refunds for overseas visitors, incentives for study tours and group travel, and supports worker rest days. The city will also distribute vouchers worth up to 500 yuan per person to college students for local spending on dining, accommodation, and shopping.

(Header image: VCG)