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A Covid-19 testing site in Shanghai.

ALY SONG/REUTERS

Really big headline looks like this and wraps

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HONG KONG—Two of China’s biggest cities ordered residents to undergo mass Covid-19 tests this week, highlighting the risk that fresh outbreaks could trigger new and economically costly lockdowns.

Authorities in Tianjin, a northeastern metropolis of more than 13 million people, ordered citywide tests on residents to screen for coronavirus infections starting Monday evening, after reporting two new cases earlier in the day. These were the first locally transmitted infections detected in more than a week in the home to the biggest port in northern China and the main maritime gateway to Beijing.

HONG KONG—Two of China’s biggest cities ordered residents to undergo mass Covid-19 tests this week, highlighting the risk that fresh outbreaks could trigger new and economically costly lockdowns.

Shanghai’s government said it would require residents across nine districts and other administrative zones to take two Covid-19 tests over a three-day period from Tuesday. Local officials cited continued risks of the virus spreading outside known transmission chains, although reported locally transmitted infections fell to 17 cases on Sunday from a daily average of about 50 in the past week.

“Covid risks remain the most important determinant of China’s growth outlook,” Goldman Sachs analysts said in a note to clients dated Sunday, adding that the absence of a clear strategy to exit the zero-Covid policy creates risks to growth in the face of more transmissible variants.

Such stringent responses are emblematic of China’s zero-tolerance policy toward the coronavirus, marked by extensive testing and heavy-handed lockdowns that have taken a hefty toll on the economy. Shanghai’s lockdown from late March to the end of May coincided with an almost 14% drop in gross domestic product in one of China’s most economically important cities.

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