onsdag 4. august 2021

China’s crackdown on tutoring leaves parents with new problems

As the private education industry grew, it accumulated massive wealth and power. In the past year, Chinese authorities have targeted mega-corporations, including Tencent, Didi and Alibaba, with investigations, financial orders, sanctions and public dressing-downs of their executives, under the remit of an anti-monopoly drive.

While there had been signs from China’s leaders that a crackdown was coming, the July announcement blindsided the industry. It triggered falls of as much as 60% in the share price of some tutoring companies listed on the New York and Hong Kong exchanges. Knowing that there is little ability to resist a Chinese government order, some of the biggest companies, including Gaotu Techedu, the New Oriental Education and Technology Group, and the US-listed Tal Education Group, released statements saying the new policy was not good news for them but that they would comply with the instructions.