China’s coronavirus test providers have reported a surge in unpaid fees as cash-strapped local governments struggle to fund a mass testing program that is central to Xi Jinping’s zero-COVID policy, reports the Financial Times. Public records show accounts receivable at the country’s 11 main PCR testing companies soared nearly 90% year on year to hit RMC 38 billion ($5.4 billion) in September.
The payment delays raise questions about the financial sustainability of the zero-COVID policy, which relies on large swaths of the population taking PCR tests every few days, mostly paid for by local governments.
Chinese local authorities are suffering a revenue drop as the world’s second-biggest economy is battered by the strict coronavirus policy and by a property sector downturn.
