China clamps down on multibillion-dollar private tutoring sector

A school pupil sits in front of her computer.

The Chinese private tutoring sector boasts around 600,000 online institutions and is expected to reach US$112.6 billion in 2021. Picture: Markus Trier from Pixabay

Published Aug 6, 2021

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CAPE TOWN - China has clamped down on its multibillion-dollar private tutoring sector after officials announced policy changes that restrict foreign investments and ban tutoring firms from making a profit teaching core school subjects.

According to Al Jazeera, the policy changes were announced on July 24 with the aim of easing financial pressure on families. However, Chinese schools now face the added pressure of meeting the extra needs of the pupils on campus.

Chinese regulators said private firms would need to become non-profit organisations, and ordered local authorities to stop approving new tutoring institutions.

South China Morning Post (SCMP) reported on Friday that the guidelines prevent any classes on weekends as well as during the school holidays.

Education researcher at the University of International Business and Economics Qu Yifan told SCMP the changes will ensure children enjoy their free time, which will in turn allow them to return to school refreshed and achieve better results.

“From the perspective of ensuring healthy growth of minors, we should give back to our kids their childhoods, so they have sufficient time for rest and recreation,” said Qu Yifan.

Meanwhile, estimates by Goldman Sachs show 76% of China's private tutoring market collapsed due to the new guidelines both domestically and in international markets. The industry boasts around 600,000 online institutions with the added boom during Covid-19 lockdown and is expected to reach US$112.6 billion in 2021.

Parents of children who require weekend and after-school off-campus tutoring are now having to bear the brunt of the crackdown as the tutoring had been essential for these students to succeed in school, according to SCMP.

African News Agency

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