The Ministry of Culture said in a website statement that it would work with various departments to intensify supervision of such profit-oriented shows, while boosting law enforcement.
"Illegal performances such as strip dances have been occurring in rural areas from time to time that have disrupted the cultural market and created a negative influence on the social environment," it said.
The state-run China Daily reported Friday that people have been paying troupes to play folk music at funerals and perform racy acts, in the hope that more people will come.
"They want to have as many people as possible attend the funeral," Zhang Chengdong, vice-president of the Jiangsu Festivals and Events Association, said.
"In this way, they feel they fulfill their obligation of fidelity to their elders."
The ministry has cited the case of a "Red Rose Troupe" -- an art group from Handan in northern Hebei province -- who presented what the authorities characterized as a strip show at the funeral of an elder on Feb. 15
It also said "what was said to be an obscene act" had taken place at a funeral in the eastern coastal province of Jiangsu on Feb. 27.
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