China plans to make regular Covid-19 testing part of residents' lives. Read here

At present, nearly 25 million residents in the eastern financial hub of Shanghai remain under some form of lockdown as the city battles China’s biggest ever coronavirus outbreak
The Chinese authorities have decided to move on to regular mandatory Covid-19 testing for its citizens to curb another major outbreak of the pandemic. This approach will reportedly cost the government 1.8% of gross domestic product if it’s rolled out to more places, according to an estimate from Nomura Holdings Inc.
China is setting up thousands of permanent PCR testing stations, with 9,000 already completed in Shanghai alone, as authorities aim to “normalise” tough pandemic controls even after the current round of lockdowns end.
At present, nearly 25 million residents in the eastern financial hub of Shanghai remain under some form of lockdown as the city battles China’s biggest ever coronavirus outbreak.
But in a bid to head off future flare-ups, municipal authorities have been setting up a system that will make regular Covid-19 testing a permanent feature of everyday life, with other cities taking similar steps.
Of Shanghai’s 9,000 testing sites, 5,000 were already operating, vice-mayor Wu Qing said on Friday.
As part of China’s “dynamic” zero-Covid strategy, residents of cities including Beijing have already faced frequent tests, and have long grown accustomed to displaying a “health code” mobile app to show they have not visited high-risk areas.
But the new system will make it a requirement for anyone to have a negative PCR test before entering public spaces. It was unclear how recent the tests needed to be.
The testing stations – located in residential areas, industrial parks, office blocks, and at entrances to train and subway stations – will allow people to be tested in just 15 minutes, officials said.
Beijing, which is battling an outbreak, also said on Thursday that it would implement “normalised” testing and ensure that anyone entering public buildings need to show a negative test result taken in the last seven days.
The city of Hangzhou, 176 km (109 miles) southwest of Shanghai, has also promised to set up 10,000 permanent testing stations, and will allow access to its scenic spots only for people with a negative Covid test from the previous 48 hours.
China has doubled down on its zero-Covid rhetoric, saying the strategy remains the most cost-effective and humanitarian way of dealing with the pandemic, but many residents and business groups have raised concerns about the costs of frequent lockdowns.
Economic impact of regular mandatory Covid-19 testing on China
Testing 70% of the population every two days would amount to 8.4% of China’s fiscal expenditure, Nomura economists led by chief China economist Lu Ting wrote in a note. That’s based on the cost of a single-person polymerase chain reaction, or PCR, test of 20 yuan.
Analysts at foreign banks were divided on the merits of the plan for regular testing.
Goldman Sachs said in a note that regular testing could offer a way out for China as it maintains “zero-Covid” while reducing the economic impact, adding that testing costs would be only a fraction of the country’s GDP.
“Paying for mass testing in large cities may be effectively a major stimulus as it could allow production and consumption to proceed,” the Goldman economists wrote. At least 11 large Chinese cities including Beijing have introduced regular testing, they said.
However, Nomura said the benefits of regular PCR testing would be limited, adding that it could cost between 0.9% and 2.3% of GDP, depending on how far the mandate was extended across China’s population.
“Much of this spending will likely crowd out fiscal spending on other key areas,” it added.
Most economists doubt China’s government can meet its target of “about 5.5%” GDP growth for the year if it continues to enforce widespread lockdowns to contain virus outbreaks. Official data indicated that economic activity contracted in April as cities like Shanghai locked down and virus checks made intercity deliveries more difficult.
Much will depend on how local government testing is funded and how many cities and provinces start doing it. In 2020, China’s central government issued anti-virus bonds, with the proceeds handed to local governments to spend. That helped them to increase health care spending without reducing support for other priorities.
However, despite evidence of economic damage from the virus policy, the standing committee of the Communist Party’s Politburo, the top political body, said on Thursday the Covid Zero approach was “scientific and effective.” It signaled a tougher line by dropping a reference to reducing the economic costs of virus control policies, which it had made in previous statements.
(With inputs from agencies)
Log in to our website to save your bookmarks. It’ll just take a moment.
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
Your session has expired, please login again.
You are now subscribed to our newsletters. In case you can’t find any email from our side, please check the spam folder.
This is a subscriber only feature Subscribe Now to get daily updates on WhatsApp


Leave a Comment