China’s Changing Education Policy 

The Transformation of the Off-campus, Private Education Industry in the light of the “Double Reduction” Policy in China

In late July 2021, the Chinese government released new regulations affecting private education operators putting an end to the golden age of online learning companies. These new regulations will dramatically change the face of K-12 education and have a ripple effect on the entire market for years to come. Market leaders are scrambling to adapt to the new situation which has left some private companies with a 70% loss in annual revenue.

To begin with, what are the new regulations put in place by the Chinese government?

• No new foreign investment is allowed and companies are not allowed to go public. The government is driving private investment away from K-12 education.
• All existing private companies must become nonprofits if they want to operate in the public sector.
• No remote training on weekends and holidays.
• No international content is allowed in core K-12 programmes.
• All online and offline teachers must be properly licensed.

These are only some of the new rules put in place by the Chinese government and in the last three weeks since they’ve been implemented there have been even more changes. Despite these drastic measures, with change comes opportunity. We’ve summarised the market response and come up with an EDT perspective and analysis of not only the challenges but also the opportunities that we see on the horizon.

Report Contents | The ever shifting education landscape: What’s next in China?

1. Private after-school market in China
2. “Double reduction”: The extent of the new policy
3. Layoffs, closures and change in strategy: How the industry is reacting
   
4. How may the situation evolve?
5. The EDT&Partners perspective
6. Further reading