The Chinese city government of Dali has opened a taxpayer-funded gay bar in an effort to combat HIV.

Reuters newsagency reports that the city, located in southwest Yunnan province, has one of China’s highest rates of HIV.

Founder Zhang Jianbo told the Beijing News the bar would offer free condoms and safe-sex education as well as a place for gays to meet and socialise. Though government-funded, the bar would be staffed by volunteers from a local HIV-prevention organisation.

The gay communities of China have slowly become more open over recent years, after decades of prejudice and discrimination. With 100,000 cases of AIDS in China, local health bureaus are attempting to reach out to gay citizens rather than operate through non-government organisations as they have in the past. It’s estimated that about one third of HIV transmissions occur through same-sex activities.

Jiang Anmin, deputy director of health in Dali, told the Beijing News, "Each year, the Dali city government spends 20,000 yuan ($AUD 3,195) on treatment drugs for AIDS. So if our bar succeeds in reducing transmission, our 120,000 yuan ($AUD 19, 175) will be well-spent."

Pictured: The old city of Dali: Getty Images

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