China’s State Council and the Party’s central committee have jointly issued a set of rules aimed at curtailing the sprawling sector that has flourished thanks to massive funding from global investors and ever increasing spending from families fighting to help their children gain a better footing in life. After years of high growth, the size of the after-school tutoring sector has reached upwards of $100 billion, of which online tutoring services account for around $40 billion.
“The timing is also interesting as it coincides with the crackdown on the tech companies, and further confirms the intention of the government to regain control of and restructure the economy,” said Henry Gao, an associate professor of law at Singapore Management University, referring to Beijing’s sweeping regulatory overhaul of tech companies including Alibaba and Tencent, which have either been fined for monopolistic practices, ordered to give up their exclusive rights in certain sectors, or, in the case of Didi, have fallen afoul of national security rules.
The rules, released over the weekend, aim to ease homework and after-school study hours for students, which the policy dubbed the “double reduction.” They stipulate that companies teaching subjects covered in primary and middle school, which are compulsory in China, should register as “nonprofit institutions,” essentially banning them from making returns for investors. No new private tutoring firms can register, while online education platforms also need to seek new approval from regulators despite their previous credentials.
Meanwhile, companies are also banned from raising capital, going public, or allowing foreign investors to hold stakes in the firms, posing a major legal puzzle for funds like US firm Tiger Global and Singapore state fund Temasek that have invested billions in the sector. In a further blow to China’s ed-tech startups, the rules also say that the education department should push for free online tutoring services across the country.
The companies are also banned from teaching on public holidays or weekends.
For large tutoring school, for example the ALO7 or the XinDongfeng, they adopt a lot of smart equipment to have the students to participate the classroom more. For example the wireless student keypads, wireless document camera and interactive panels and so on.
Parents may thought it is a good way to improve their children’s education level by join in the tutoring school and put so much Money on them. China government restrict the tutoring school help the public school teacher to teach more in classroom.
Post time: Aug-19-2021