Can China find zero-Covid wriggle room to beat GDP slowdown?

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After a difficult two months, Beijing online food distributor Zhang Jian is struggling to make ends meet, affected not just by the Omicron outbreak in his home city but also Shanghai’s lockdown. Zhang, who imports frozen foods, has an empty warehouse in Shanghai, where shipping has been unable to arrive, while a drink he distributes as a general agent is...

The costs of frequent mass Covid-19 testing, which is free to the public, is among the pressures facing local government coffers in China.After a difficult two months, Beijing online food distributor Zhang Jian is struggling to make ends meet, affected not just by the Omicron outbreak in his home city but also Shanghai’s lockdown.

Li’s unprecedented national teleconference on Wednesday, with 100,000 officials, reinforced the pressure Beijing is putting on local authorities to prevent economic growth losing momentum. There are also reports that Beijing is considering a further relaxation, in response to appeals from investors, to a 7+7 policy for international arrivals – seven days in a hotel followed by seven days of health monitoring at home.

The responses deployed by local governments include earlier lockdowns, mass testing and regular frequent testing for early detection – even after outbreaks subside – as well as wider quarantine restrictions. According to Cui, the deep pockets needed to sustain frequent, large-scale and free testing could prompt a more down-to-earth approach. The national healthcare security administration has already demanded local governments stop paying for tests with public insurance and use their own funds instead.

Zhu Huachen, an associate professor with the school of public health at the University of Hong Kong, said clear, universal guidelines from the central government would clear doubts and promote domestic travel.

 

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