Large-scale nucleic acid testing is the main means by which the CCP maintains its strict zero-epidemic prevention measures. In the past three years, nucleic acid testing has become the norm along with people’s daily life, and it has also become a hugely profitable industry in the decline of all industries. However, the huge amount of accounts receivable that broke out recently is as high as 160 billion, which has become the shadow of China’s nucleic acid testing industry this year. On November 8, the “Notice on Suspension of Receiving New Crown Nucleic Acid Samples” issued by a nucleic acid testing agency in Xuchang, Henan circulated on social media.
In this “Notice”, Xuchang Boao Runkang Medical Laboratory said that the institution has been undertaking large-scale nucleic acid testing tasks in Xuchang since January 2021, and the investment in reagent consumables and labor costs is relatively high. The government failed to remit money in time, which caused the agency to operate under too much pressure. “According to the notice from the headquarters, the reception of all new crown nucleic acid samples in counties and districts will be suspended from 0:00 on November 11, 2022.”
The “Notice” also remarks: After the funds are in place, the CCP virus (new crown) nucleic acid detection work will be resumed normally.
The news has been deleted after being reported by Lu media.
Xuchang, with a population of about 4 million, is an hour’s drive from Foxconn in Zhengzhou, where the outbreak occurred recently. Like most cities, Xuchang has been relying on financial appropriations from the CPC Central Committee to fill the financial gap.
In 2021, Xuchang’s government revenue will be 18.9 billion yuan, while expenditures will be as high as 36 billion yuan.
Rising levels of local government debt are inevitable at a time when Chinese real estate continues to slump and land sales and tax revenues fall. The blockade and testing costs generated by the reset have further exacerbated local finances, making it increasingly impossible to bear the ever-increasing cost of epidemic prevention, especially in small and medium-sized cities.
Following the statement by Xuchang Nucleic Acid Company to stop receiving nucleic acid samples, several nucleic acid companies in Xi’an, Shaanxi Province also stopped nucleic acid testing business.
A few days ago, several nucleic acid testing stations in Xi’an, Shaanxi Province were suspected of being posted by their own “Dabai” protest banners with black characters on a white background. “, causing the testing agency to suspend the nucleic acid testing business for the general public.
According to Caixin.com, from the first three quarters of this year, the accounts receivable of the top nine nucleic acid testing institutions alone amounted to RMB 36.2 billion.
Among them, China’s nucleic acid testing leader “Dian Diagnostics” has receivable but uncollected accounts of 10.75 billion yuan in the first three quarters of this year, and its net operating cash flow has also dropped from 474 million yuan at the end of last year to 0.53 yuan at the end of September. billion.
The local government has gradually become difficult to support, resulting in frequent occurrences of arrears. This has directly led to the arrears of staff wages by nucleic acid testing institutions. This vicious circle seems to have become the epitome of China’s nucleic acid testing industry this year.
After the nucleic acid incidents in the above-mentioned two places attracted attention, the local governments of the two places intervened. At present, the two testing institutions have resumed operations one after another.
How far can the CCP’s “clearing” go?
In the first nine months of this year, China’s fiscal deficit totaled 7.1 trillion yuan, triple that of last year, Caixin reported.
In areas with poor economic conditions and local financial constraints, there have been serious arrears of nucleic acid testing fees. The nine largest nucleic acid testing institutions in China were owed 36.2 billion yuan this year.
This has also caused more and more regions to cancel free nucleic acid testing under increasing financial pressure.
Yesterday (10th), Xi Jinping presided over the first meeting of the Standing Committee of the Political Bureau of the Central Committee after the 20th National Congress. However, what is different from the past is that Xi Jinping proposed the concept of precise epidemic prevention this time, saying, “We must adhere to scientific and precise prevention and control, improve the effectiveness of epidemic prevention work, accurately analyze epidemic risks, and further optimize and adjust prevention and control measures. Nucleic acid testing, personnel movement, medical services, vaccinations, service guarantee enterprises and campuses and other aspects of epidemic prevention and control, and the relief of stranded personnel have taken more precise measures.”
Today, the CCP announced the cancellation of the circuit breaker mechanism for inbound flights, and changed the quarantine time for inbound personnel from “7+3” to “5+3”. In addition, it is required that areas where the CCP virus epidemic has not occurred shall carry out nucleic acid testing on risk positions and key personnel strictly in accordance with the scope determined by the ninth edition of the prevention and control plan, and the scope of nucleic acid testing shall not be expanded.
Some analysts believe that in the context of the global unblocking, the “zero” policy adhered to by the CCP will severely hit the economy and people’s livelihood, and the resulting secondary disasters will drag the CCP to the dual level of economic downturn and deep public grievances. in the abyss.