2023-07-22 10:03:16
Bankruptcy of a private education company following government ban
Increase in small-scale, one-on-one tutoring
Parents “Pay 50% more for extracurricular expenses”
China’s policy to strengthen the crackdown on private education, which was originally supposed to ease the burden on parents, is having the opposite effect of spreading the private tutoring black market and further increasing private education expenses.
Bloomberg reported on the 20th (local time) that “the $100 billion tutoring ban policy is spreading the Chinese black market.”
In July 2021, the Chinese government announced tougher crackdowns on private education, banning the provision of for-profit classes for school subjects. The Chinese government explained the move as a measure to ease the burden of educational expenses on school assistants and prevent the disorderly expansion of the $100 billion education industry.
After the government announcement, numerous private education companies went bankrupt and tens of thousands of related jobs disappeared.
Bloomberg recently interviewed parents in cities such as Shanghai and Shenzhen and reported that despite the Chinese government’s policies, education spending has actually increased. This is because as the number of parents eager for their children’s education is rapidly increasing, they are turning to underground tutoring services. Bloomberg analyzed, “It suggests that one of President Xi Jinping’s signature policies has fallen short of its target.”
The entrance examination system is mentioned as the cause. China’s university entrance exams attract notorious competition, with 10 million people taking the exam each year. This is because entering an elite university, where future career choices and remuneration can be determined by this test, means that there is a strong demand for test preparation.
“Our burden hasn’t eased at all,” said Sara Wang, who lives in Shanghai. “The race to get into a good university is a push and push of thousands of troops and horses to cross the pedestal.” She is investing 50 percent more money in her children’s classes than she used to, and she expects the cost of classes, which are currently between 300 and 400 yuan ($42 to $55) per class, to rise. According to Bloomberg, teachers who used to teach large classes are increasingly offering smaller or one-on-one classes and charging students higher tuition fees to avoid crackdowns.
In China, there are online tutoring classes approved by the authorities and operated at low cost, but it is said that parents are ignoring them due to questions regarding proper guidance and supervision of classes.
Recently, it has been confirmed that the black market for tutoring is more active during the vacation. Education companies give different titles such as ‘thought class’ for math class and ‘literature’ for Korean language. The Chinese authorities are also stepping up their crackdown. China’s Education Daily published an article warning of illegal academic services disguised as non-curricular programs such as singing and drawing, and the People’s Daily reported on the 28th of last month that Hefei local authorities raided private academies and uncovered 77 violations. It is known that the academies rented apartments or hotels while conducting illegal tutoring.
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