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23-07-2021, 11:11 PM
China’s after-school tutoring and extracurricular market is a large and growing sector, viewed by many as crucial to ensuring children’s long-term educational and career success. A study of China’s tutoring market estimates that the sector had more than doubled from 2011 to 2021, from RMB 203.2 billion to a projected RMB 564 billion by the end of the year. As of 2017, over 50 percent of middle and high school students enroll in after school tutoring, with 21.9 percent of elementary schoolers and 12.7 percent of kindergarten students enrolled.
In recent months, regulators have focused on means of restricting educational expenses, viewing them as key contributors to citizens’ hesitancy toward having more children. China’s after-school tutoring and extracurricular market is a large and growing sector, viewed as crucial to ensuring children’s long-term educational and career success.
So far, the government is focusing its efforts on:
In the short term, after school tutoring businesses will either need to rapidly adjust service offerings or close. Over the long-term, this change could usher in a major shift in the way that the industry operates, or even permanently limit prospects for sector growth.
https://www.chinabusinessreview.com/chin...irth-rate/
In recent months, regulators have focused on means of restricting educational expenses, viewing them as key contributors to citizens’ hesitancy toward having more children. China’s after-school tutoring and extracurricular market is a large and growing sector, viewed as crucial to ensuring children’s long-term educational and career success.
So far, the government is focusing its efforts on:
- Creating new oversight bodies: The newly created Department of Supervision of Off-Campus Education (校外教育培训监管司) under the Ministry of Education is intended to regulate private tutoring services. Its announced remit includes regulating services for middle and elementary school children, implementing Party principles within education companies, and regulating market fluctuations.
- Implementing partial bans on tutoring: Perhaps most significantly, new trial rules in major cities ban online and offline tutoring over school holidays, a move that companies report would put them out of business. At present, the trial ban impacts cities and provinces including Beijing, Shanghai, Jiangsu, and Shandong, but some version of the policy is anticipated to be rolled out nationwide.
- Limiting the cost and length of instruction: Limiting tutoring tuition fees and standardizing teaching materials is intended to reduce costs for cash-strapped parents. Beijing is leading the charge, with the recent release of guidelines that require tutoring companies to limit the number of lessons per billing package.
- Fines: Regulators have also fined education companies for deceptive pricing and reviews. In May, the State Administration of Market Regulation fined both Tencent-owned Yuanfudao and the Alibaba-owned Zuoyebang RMB 2.5 million for reportedly doctoring teacher qualifications and reviews, as well as advertising misleading pricing.
In the short term, after school tutoring businesses will either need to rapidly adjust service offerings or close. Over the long-term, this change could usher in a major shift in the way that the industry operates, or even permanently limit prospects for sector growth.
https://www.chinabusinessreview.com/chin...irth-rate/
