High ranking Chinese state officials may still splurge on luxury, despite crack down on corruption

Earlier this week, China’s Central Military Commission has banned military licence plates on luxury cars. Any sedans (not SUVs) priced at more than 450,000 yuan ($73,000) and with engine capacity of 3.0 liters are also banned.

However, the rich may still find their way around. Chen Jierong, a law professor at Sichuan University in Chengdu, indicated that the new regulations would likely reduce the number of luxury cars with military plates on the streets for a short while. “I am sure many expensive cars with military plates will re-emerge soon. They have been banned five times over the last few decades, but more emerged after each ban. This time will be the same,” he tells The South China Morning Post.

“It is a common practice in Beijing for an Audi A8, with a real [military] plate, real paperwork and a real driver in a military uniform, to be leased out by a senior military officer to a businessman,” he added.

Could there be a similar situation with the ban on gifting and banqueting expenses, introduced last month? Some analysts have jumped to the conclusion that gifting will never ebb, and Chinese would buy abroad these gifts, especially in Hong Kong or Taiwan. But just how can the purchase and actual ‘gifting’ be traced? They could both buy and offer the gift abroad or they could well donate the particular gift to a relative of the receiver.

adapted from The South China Morning Post; additional comments by CPP-LUXURY.COM editorial staff

Military car plate on Audi S8 in Beiing