China’s coronavirus test providers hit by payments crunch
China’s coronavirus test providers have reported a surge in unpaid fees as cash-strapped local governments struggle to fund a mass testing programme that is central to President Xi Jinping’s zero-Covid policy.
Public records show accounts receivable at the country’s 11 main PCR testing companies soared nearly 90 per cent year on year to hit Rmb38bn ($5.4bn) 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.
This story originally appeared on: Financial Times - Author:Edward White
