Coronavirus: cost of China’s zero-Covid policy forces another local government to charge for tests

Local governments have been burdened with increased expenditure as a result of Beijing’s zero-Covid policy and its hardline restrictions

While more municipalities could start charging residents for Covid tests, it does not presage a major change in government policy, analysts say

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A number of cities and districts across China are now charging for Covid tests to cover mounting costs. Photo: Xinhua

Published: 6:45pm, 3 Nov 2022

Guizhou province in southwest China is the latest in a growing number of municipalities that have started charging people for Covid-19 tests, reflecting the mounting fiscal pressures faced by local governments stretched thin by zero-Covid, a property market slump and tax rebates.

Except for residents in “risky zones”, Covid tests are no longer free in Guizhou or the city of Yueyang in Hunan province, local authorities confirmed. Residents must pay a small fee, usually less than 5 yuan (US$0.70).

Across China, people still require a negative test result within 72 hours to enter public spaces, restaurants, hotels, entertainment venues, offices and use transport.

A number of cities and districts in Sichuan, Gansu, Guangdong and Yunnan provinces have also started charging for Covid tests in recent months.

Local governments have been burdened with increased expenditure as a result of Beijing’s zero-Covid policy, which relies on lockdowns, mass testing and quarantine in government facilities.

Fiscal revenue has also been strained by a slump in the property sector and tax rebates to help virus-hit businesses.

Land sales contributed 8.7 trillion yuan to the coffers of local authorities across China last year, making up 42 per cent of their revenue, excluding funding from the central government.