Construction of new government buildings in China will be taking a backseat in the next five years as part of latest measures to curb unnecessary spending and corruption in the whole country.

The development could serve as a blow to Australia, the world's biggest exporter of iron ore, a key steel-making ingredient. China is currently the world's largest consumer of iron ore, at the same time the world's largest steel-producing country. Other big importers of iron ore include India, Japan and Korea. In June, Australia projected a 14 per cent jump in iron ore exports for the fiscal year 2013-14.

Apart from new government buildings, the government likewise suspended the construction of training centres or hotels in the coming five years. Even projects that had been given approval for construction will likewise be put in the back burner.

"The directive called on all party and government bodies to be frugal and ensure that government spending goes toward developing the economy and boosting people's wellbeing," official news agency Xinhua said, based on a joint directive issued by the General Office of the Communist Party of China (CPC) Central Committee and the General Office of the State Council.

Over the years, public disapproval has grown worse over how government officials constructed public state buildings across China. Many government buildings were erected with grandiose designs and oversized offices, complete even with fancy lighting and chandeliers befit for mansions.

Saying such structures alienated many ordinary and poor citizens, Chinese President Xi Jinping, who took office in March, has started a frugality campaign.

"The main purpose of the call for a ban on new government buildings is largely symbolic in that these are a highly visible sign of government officials misusing public monies," Andrew Wedeman, a political science professor at Georgia State University, told Bloomberg News. "A real assault on corruption, however, requires a much less visible, long-term effort to attack the causes of corruption, not just those involved and the visible symbols of corruption."

Professor Wang Yukai from the Chinese Academy of Governance, meantime, said the move may also be related to downward pressure in the economy.

"In order to let the people live comfortably, the government has to tighten its belt and cut its own spending," Mr Wang told Xinhua.

"Financial departments should tighten the management of public finance budgets by refraining from allotting funds for building projects without going through relevant approval procedures," the directive said.

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