ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Cost of China's zero-COVID push stokes growing frustration

Tests, vaccines and quarantines cut into funds for local government employees

A hotel commandeered as a quarantine facility is sealed off in Dalian. (Photo by Shin Watanabe)

DALIAN, China -- China's zero-COVID policy is taking a growing toll on public finances as testing and control costs mount even as revenue shrinks, increasing the burden on already cash-strapped local governments.

Government medical and health spending on the national and local levels totaled 730.3 billion yuan ($110 billion) for the first four months of 2022, up 7.5% from a year earlier and 22% from 2019. The full-year total for 2021 came to 1.92 trillion yuan, equivalent to 1.7% of gross domestic product.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more