Pop stars like singer Li Yuchun (center)are major features in most variety shows held throughout the country. Provided to China Daily

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The central government's crackdown on extravagance and corruption has not only had an impact on dining and liquor business but also on the gala industry.

The Publicity Department of the Communist Party of China, Ministry of Finance, Ministry of Culture, National Audit Office and the State Administration of Press, Publication, Radio, Film and Television released a notice in August 2013, urging the end of extravagant galas, which usually consist of variety shows, and asking the public to hold more frugal galas in the future.

The notice pointed out that too many galas had been staged recently, most of which cost a huge amount of money. The event organizers end up competing to host the most extravagant event, which is a waste of money. This is especially true with galas held by local governments that propagate malpractice and impair the image of the Party and the government.

Chen Shaofeng, deputy director of the Institute for Cultural Industries at Peking University, estimated that the gala industry shrunk by 50 percent after the notice was released.