China freezes highway tolls to boost economy but move comes at a cost

Toll road operators and local governments face indefinite loss of revenue

20200220 A man crosses an empty highway in Wuhan.

A man crosses an empty highway in Wuhan. © Jiji

KENJI KAWASE, Nikkei Asian Review chief business correspondent

TOKYO -- Beijing's decision to suspend tolls on all roads, bridges and tunnels in China to spur economic activity has left toll operators reeling, with potentially serious impact on local governments.

The Ministry of Transport announced on Saturday that the suspension would start less than two days later, at midnight Monday, and "last until the epidemic prevention and control operation is over." The main objective, the ministry said, is to "stand by companies to return to work and production, in order to provide vigorous support for the overall economic and social stability."

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