China is quietly easing rules on private tutoring companies to help boost its struggling economy, which is starting to help the industry recover from a tough crackdown that began three years ago. This information comes from industry experts and data reviewed by Reuters.
While there hasn’t been an official announcement about changing the rules, insiders say that the government is now allowing the tutoring industry to grow again.
This shift shows that Beijing is focusing on creating jobs. Some parents have also noticed that tutoring schools are becoming more open in recent months, compared to when strict rules were first introduced.
In 2021, the Chinese government launched the “double reduction” policy to ban for-profit tutoring in main school subjects, aiming to relieve financial and educational pressures on families.
This move significantly impacted the industry, wiping out billions in market value and leading to many job losses.
Despite these challenges, the tutoring industry has shown resilience. Parents like Michelle Lee, who spends around 3,000 yuan (about $420) a month on tutoring for her children, report that tutoring centers are operating more openly now. Lee mentioned that before, these centers would hide their activities, but now they seem to be more confident.
The education ministry has not commented on its changing stance, but recent reports suggest the government is recognizing and addressing the difficulties in the education system.
Experts like Lynn Song from ING believe that while the government won’t openly admit the crackdown was too harsh, there is an unspoken shift toward a more relaxed regulatory environment.
Several tutoring companies are now seeing growth, as the government includes education services in plans to stimulate consumption.
The number of active licenses for tutoring centers has increased, and major companies like TAL and New Oriental are hiring again after significant layoffs.
However, some tutoring businesses have found ways to adapt to the old restrictions, offering classes disguised as other subjects. For example, math classes might be marketed as “logical thinking.”
Parents are still worried about the rising costs of private tutoring, which could increase educational gaps between rich and poor students.
One parent, Yang Zengdong, pointed out that the current system forces families to choose between expensive private lessons or spending hours helping their children with schoolwork, which was not the intention of the original policy.
This information highlights a complex situation in China’s education sector, where the government is trying to balance regulation and support for families while addressing economic concerns.
This overview is based on findings from Reuters.