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Coronavirus: faced with mounting costs, some ask whether China can afford to maintain mass testing
- Local governments have been spending heavily to control the spread of Covid-19, including on extensive testing programmes
- Though less disruptive than lockdowns, whether local governments can afford to continue mass screening is subject to debate
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While some local governments in China have begun adjusting mass testing mandated under Beijing’s zero-Covid policy, its widespread use to contain the highly transmissible Omicron variant continues to take a sharp toll on regional finances and consumer sentiment, analysts say.
Whether local governments can afford to press on with free mass screening has been a subject of debate in China.
On one hand, questions have been raised about the long-term costs. But on the other hand, Beijing considers the programme an effective alternative to lockdowns, which have had a profoundly detrimental impact on economic activities.
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Citing harsh Covid containment rules, many analysts have downgraded their economic growth forecasts for China this year to below Beijing’s target of “around 5.5 per cent”.
02:31
Beijing orders mass testing as Chinese capital braces for Omicron surge
Beijing orders mass testing as Chinese capital braces for Omicron surge
Yao Yang, an economist and professor with the National School of Development at Peking University, said the cost of maintaining zero Covid was too high, as it continues to restrict mobility, particularly in the country’s key economic hubs Shanghai and Beijing, which will have a severe impact on the economy.
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