South China Morning Post: Tightened Regulation Signaled On China’s K-12 Tutoring Market

Mar 12, 2021

China’s top legislature has indicated tightened regulation on K-12 off-campus education market, which brings uncertainty to the market and the plans of Chinese Big Tech companies to expand operations in the education sector.

Big Tech’s vast resources are expected to help them continue their expansion into education. “The internet giants won’t give up their education initiatives,” said Claudia Wang, a partner at management consulting firm Oliver Wyman. “Most of them have businesses in the education sector that are aligned with government initiatives to improve access to quality education via different channels. They are also equipped with strong capital to be compliant with government regulation.”

Still, about 90 per cent of the estimated 1 million off-campus education providers in China are small enterprises that train fewer than 1,000 students a year, according to a report published last year by Oliver Wyman, in collaboration with China’s National Institute of Education Sciences and TAL.

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