China announced a ban on private tutoring to reduce competition and enhance birthrates

On Wednesday, the Chinese Authorities announced the ban on private tutoring and restricts tutors from providing online classes in unregistered venues like residential buildings, coffee shops and others in its pursuit to ramp-up the government’s effort toward eliminating all for-profit tutoring. Earlier this year, the authorities had announced a ban on for-profit tutoring in subjects across the school curriculum system in its pursuit to reduce the pressure on children. A highly competitive education system has fueled the tutoring services; However, the government authorities have found a way to eliminate extra costs of child-rearing to nudge up a declining birthrate.

Many communication sources reported this week suggested various ways in which the tutors and parents have been trying to mislead the rules, including how agencies were showcasing advertising wherein it shows that live-in tutors could get salaries of over USD 4,650 a month. Across some places, particular subject tutoring has been moved underground and have put a different vest for evading these regulations. It has impacted the policy’s implementation across the country. The whole crackdown on private tutoring has diminished the shares for tutoring companies which were traded on New York and Hong Kong, which includes New Oriental Education & Technology Group and Gaotu Techedu.

The Ministry of Education stated that off-campus centers which are offering tutoring across subjects registered on the school curriculum are required to achieve a license, establish their presence in registered venues and hire certified and qualified teachers. The ministry also stated that any attempts toward evasion of the regulations including hiring private tutors as housekeeping services, cultural communication and undertaking classes in the wake of summer camps may not be left untreated. Offline institutions are also stated not to allow for conducting online after-school tutoring with the help of instant messaging, or video platforms.