There isn't a reason to, they get tax from it and it's not like luxury goods consume a lot of resources.
When did money cease being a resource?
Every RMB spent on foreign made and owned luxury products is one less RMB (and all the associated labour and
real resources) that can be spent on actual worthwhile things - education, research, industry, manufacturing, infrastructure, purchasing real resources...
The only decent argument for spending on luxury goods is that it can potentially make some people "happy" for a little while. At the very least, provide people with a distraction. This may be useful on occasion but weaning Chinese people off overspending on luxury goods is in my opinion a worthwhile pursuit. Veblen goods are by definition overpriced and not worth even a small fraction of paid for price. It does nothing for the economy (in any real measure), are terrible investments in the long run (for run of the mill mass produced luxury crap that the middle and upper middle spend money on), and Chinese people own a disproportionate amount in volume and $ value of global luxury goods. This means Chinese people are the biggest suckers for the modern age scam that is luxury brand crap. Also noticing that so much social worth in Chinese society is unfortunately determined by how much of this shit they own. So much so that global luxury houses have trended towards making their brand names more noticeable just for the Chinese market demand (again it's about 50% of globe despite Chinese population being only 1/6 and less of globe). Chinese people overwhelmingly infer someone else's level of success and social status based on how big these brand names are. Hopefully this corrects and younger generations pick up some class and become more grounded in how they measure others.
