China provinces spent billions on Xi Jinping's zero-Covid policy: Report

Covid In China: Total Covid-related spending surged by about 50 percent during three years, hitting a peak of 71.1 billion yuan in 2022, the report said.

China's regional governments spent billions to effectively enforce the country's ‘zero-Covid’ policy, a report said. State-owned Xinhua News Agency reported that the huge costs incurred by the provinces was the major reason for China to abruptly end its stringent policy which was touted as president Xi Jinping's flagship plan.

Covid In China: Chinese President Xi Jinping speaks. (AP)

The report cited the budget of Guangdong, China’s top province by economic output, noting that it had spent a total of 146.8 billion yuan on preventive measures since 2020. It showed that the province spent mostly on testing, vaccinations and other enforcement-related expenses.

Total Covid-related spending surged by about 50 percent during three years, hitting a peak of 71.1 billion yuan in 2022, the report said.

Meanwhile, China’s economic growth fell to its second-lowest level in at least four decades last year, official data showed, adding that economic activity in the country is reviving after curbs were lifted following nationwide protests.

China's economy grew by 3% in 2022, less than half of the previous year's 8.1% rate, official data showed, making it the second-lowest annual rate since at least the 1970s after 2020, when growth fell to 2.4%.

Economic growth sank to 2.9% over a year earlier in the three months ending in December, the National Bureau of Statistics reported.