You can do one of two things:
char *test = "testing";
or:
char test[] = "testing";
Or, a few variations on those themes like:
char const *test = "testing";
I mention this primarily because it's the one you usually really want.
The bottom line, however, is that char x; will only define a single character. If you want a string of characters, you have to define an array of char or a pointer to char (which you'll initialize with a string literal, as above, more often than not).
There are real differences between the first two options though. char *test=... defines a pointer named test, which is initialized to point to a string literal. The string literal itself is allocated statically (typically right along with the code for your program), and you're not supposed to (attempt to) modify it -- thus the preference for char const *.
The char test[] = .. allocates an array. If it's a global, it's pretty similar to the previous except that it does not allocate a separate space for the pointer to the string literal -- rather, test becomes the name attached to the string literal itself.
If you do this as a local variable, test will still refer directly to the string literal - but since it's a local variable, it allocates "auto" storage (typically on the stack), which gets initialized (usually from a normal, statically allocated string literal) on every entry to the block/scope where it's defined.
The latter versions (with an array of char) can act deceptively similar to a pointer, because the name of an array will decay to the address of the beginning of the array anytime you pass it to a function. There are differences though. You can modify the array, but modifying a string literal gives undefined behavior. Conversely, you can change the pointer to point at some other chars, so something like:
char *test = "testing";
if (whatever)
test = "not testing any more";
...is perfectly fine, but trying to do the same with an array won't work (arrays aren't assignable).