Page 9 - ELG2107 Jul Issue 476

NEWS
China cracks over private tutoring

By Melanie Butler
The Chinese government has
set up a new department to
oversee the US$120 billion PHOTO FROM SHUTTERSTOCK
private tutoring industry in
its latest crackdown on the
country’s burgeoning for-profit
education sector. In recent years,
new government regulations
have seen a tightening up on
qualifications for native-speaker
English language teachers, the
requirement for all Chinese
children in private schools to
follow the country’s national
curriculum up to the age of 15
and, as we report on page 15, has
just introduced a requirement for
bilingual schools to be owned by a
named Chinese national.
On 1 June, 13 Chinese online
tutoring companies and app
suppliers were hit with fines
totalling some US$6 million for
various wrongdoings, including
‘fabricating teacher qualifications,
exaggerating the effects of
training... and fabricating user
reviews’, according to the
country’s State Administration ban could be extended to include support during their school years. peak. TAL Education dropped
for Market Regulation. junior summer school courses The craze for cram schools just over 60%, while shares
This was swiftly followed overseas. isn’t limited to mainland China. in New Oriental, which is also a
with an announcement by the Although the Chinese press has Hong Kong and Taiwan both big player in EFL, dropped about
Ministry of Education of the mostly reported the changes in have buxiban, while Singapore, half their value, according to
creation of a new body, the Off the tutoring market as designed where citizens cannot enrol Forbes Magazine.
Campus Education and Training their children in international As with the rest of the Chinese
Department, to supervise cram An estimated schools until the age of 16, education market, the three
schools and online platforms also has a flourishing industry New York-listed companies have
providing after-school education 75% of all children offering tutoring and ‘enrichment‘ reacted by slashing spending on
for children from preschool age classes. In Japan, such classes at marketing, an area where the
to 18. According to the South in mainland China institutions, known as jeju, are regulators are now reining in
China Morning Post, it will ‘help will receive private common. Meanwhile, in Korea, the excesses, laying off staff and
private educational institutions parents continue to spend 2% suspending new hires.
set up Communist Party cells and tutoring support of the country’s GDP on private The crackdown, which has also
establish rules for incorporation, during their hogwon cram schools and hit China’s tech giants – with
fees and the content, scheduling English language classes despite Alibaba and Tencent having
and qualifications of training’. school years continuing government efforts to invested heavily in tutoring apps
Other reports predict future crackdown on the practice. – shows no signs of abating. In
regulations will limit the hours to protect children and, to a lesser Can the Chinese government mid-June, Reuters reported that
students can study outside schools extent, Chinese values, some win its fight to rein in the cram authorities were planning to put
at the weekend and ban courses in foreign commentators have linked school craze? Time will tell, but a cap on tuition fees and introduce
the peak school summer holiday it with the new three-child policy, the current spate of regulations trial bans on vacation courses
season, when the buxiban, as also announced in June, which has certainly caused a furore, if this summer.
cram schools are called in China, encourages families to have more not among Beijing parents then Industry observers doubt
make most of their money. A children in an attempt to balance with Wall Street investors, many whether the government aims to
limit on young children studying out its ageing population profile. of whom have poured money into shut down the sector entirely, but
in the evening, both online and Many Chinese parents have China’s private education giants. the education gold rush seems
at buxiban, was introduced early been reported to be resisting No sooner were the fines to be over. As one specialist told
last year. the calls to have more children announced on 1 June then shares Forbes, “The industry has gone
It is not clear at present because of the perceived cost of in the biggest New York-listed from rapid growth to plateau.
whether the new department will bringing up a child, including Chinese education specialists “Investors can no longer view
also oversee English language the fees for extra tuition outside plummeted. The sharpest fall the education companies as being
schools, though most buxiban school. An estimated 75% of all was in Gaotu (formerly known as similar to tech stocks. They can
also offer English courses, nor is children in mainland China will GSX Techedu), whose share price no longer expect such explosive
it known whether a holiday course receive some private tutoring dropped 90% from its January growth,” she added.
editorial@elgazette.com 9