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The numbers are small, but the major port of Tianjin may be facing China's first outbreak of Omicron of any size, less than four weeks before the Winter Olympics open in nearby Beijing.

The city began mass testing of its 14 million residents yesterday after a cluster of 20 children and adults tested positive for COVID-19, including at least two with the Omicron variant.

Officials said the virus has been circulating so the number of cases could grow.

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China has stepped up its strict zero tolerance strategy in the run-up to the Olympics, which open February 4.

The Chinese capital is 115 kilometres northwest of Tianjin and many people regularly travel back and forth by car or on a high-speed rail link that takes less than one hour.

Elsewhere, millions of people are being confined to their homes in Xi'an and Yuzhou, two cities that are farther away but have larger outbreaks.

Both have been traced to the Delta variant. The outbreak in Yuzhou is also affecting Zhengzhou, the Henan provincial capital 70 kilometres to the north. Zhengzhou has been conducting mass testing and is closing schools starting today.

The first two cases confirmed in Tianjin were a 10-year-old girl and a 29-year-old woman working at the after-school centre.

Both were infected by the Omicron variant. In subsequent testing of close contacts, 18 others tested positive and 767 tested negative as of Saturday night.

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Those infected include 15 students from eight to 13 years old, the after-school centre staff member and four parents.

The citywide testing is to be completed over two days. Tianjin has also closed some subway stations on two lines to try to prevent further spread.

China had reported about a dozen Omicron cases previously, most among people who had arrived from abroad and were isolated.

In one case in mid-December, the infection was not detected until after the person had completed two weeks of quarantine, and it spread to a few close contacts in the southern city of Guangzhou.

The prime minister has declared Australia must "push through" the latest COVID-19 wave as Omicron cases continue to skyrocket across the country.

Scott Morrison said in a wide-ranging press conference this morning he doesn't accept the analysis that Australia is in the "let it rip phase".

"No, I don't agree with that analysis, that's not the approach that the Government is taking at a Commonwealth level or in the states and territories.

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"I'd describe it more, as I said before, as pushing through," Mr Morrison added.

He also warned being unvaccinated is the "most likely way" Aussies will end up in hospital with COVID-19.

"The people who are predominately in hospital who have gone there because of COVID are unvaccinated," he said.

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"If you want to end up in hospital, being unvaccinated against this virus is the most likely way to end up there.

"So, please, take availability of those vaccines."

NSW Premier Dominic Perrottet said today half of the COVID-19 patients in ICU in that state's hospitals are unvaccinated.

Omicron a 'game-changer'

Mr Morrison also gave an update on hospitalisations across the country, reiterating his calls for the nation to "push through".

"Omicron is a game-changer, and we have to push through," he said.

"We're dealing with serious volumes of cases but not seeing the same impact proportionally from previous variants as to the impact on hospitalisations.

"There are 5097 patients in hospital who have COVID (across the country).

"There are 78 patients who are on ventilators, which is well, well within capacity.

"But the major stresses on the hospital system relate to workforce issues."

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Further changes to close contact rules flagged

Mr Morrison flagged further changes to close contact rules to help reduce the stress on workplaces and supply chains.

"This is an incredibly tough time on business, there aren't lockdowns but there are many people obviously impacted by being close contacts or who have COVID themselves," he said.

"The Attorney-General is leading a process with the states and territories which we anticipate being concluded in time for National Cabinet on Thursday, which will remove any suggestion of a requirement that small medium-sized businesses have to be undertaking testing of their staff."

Another proposed change, if approved, will mean asymptomatic close contacts in "critical supply chains" would be able to return to work.

The PM also warned Aussies to brace for further hardships before the outbreak hits its peak.

School concerns addressed

After the death of a young child with COVID-19 in NSW, and in response to Queensland delaying the start of school, Australia's Chief Medical Officer Dr Paul Kelly reassured parents severe cases of the virus in kids are very rare.

"From the beginning of the pandemic, we've been very closely monitoring the effect of COVID on children and universally, throughout all of the different variants we've seen, it's been much less severe in children," he said.

"So, these are very difficult matters.

"And as I say, our condolences go out. In terms of returning to school, in general, and the vast majority of children that have Omicron is a very, very mild disease.

"There are many other reasons why children should be at school."