Reading 1/1:
234567
In 2018. Ms Hu spent a third of her annual income sending her child to summer school in Shanghai. In the following year, the cost went up. Still, she and her partner paid the fees, such is the competitiveness in Chinese children's education. "My son started to learn English at age five. I feared he would be left behind if we didn't do so," she said.
Hu and her husband are among the vast majority of parents who pay for extracurricular private tutoring - survey estimates range from 65% of families with school-aged children in 2016, up to 92% in 2021. The classes often come at eye-watering costs that contribute to an industry worth more than $150bn. In July. 2021, however, China's government announced what appeared to be the death knell for the sector.
On 23 July. China's state council released new rules banning for-profit companies from tutoring in core curriculum subjects, and foreign investment in such companies. No new licences would
be issued and all existing outfits must register as non-profits, it said. The move was announced in part as a measure to reduce pressure on parents and students in China's hyper-competitive
education field. "Parents want their children to have a happy childhood, but they are afraid they will lose at the starting line in a competition over scores," said China's leader. Xi Jinping, in
March.
The quality and resource of education varies greatly between urban and rural areas, from province to province, and between top- and lower-tier cities. There are few university places relative to the number of students, and even fewer at prestigious universities, which are concentrated on the east coast and in major cities. It is in these areas where private tutoring has exploded in the past decade.
Next Question
Next Reading
1
"Education and health are the two main concerns of Chinese people," said Dr Ye Liu, of King's College London. "Private education catered to the demand from urban families." Liu said."Because of the one-child policy, urban families used education as an investment channel, to reproduce the privileges of cultural capital - good universities, studying abroad. They need the private tutoring because it's so competitive.
As the private education industry grew, it accumulated massive wealth and power, and observers, including Liu, believe that the second primary aim of the policy is to crack down on the
industry in the same way authorities have to big tech. In the past year. Chinese authorities have targeted megacorporations, including Tencent. Didi and Alibaba, with investigations, financial
orders and sanctions.
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 released statements saying the new policy was not good news for them but that they would comply with the instructions.
There is some discussion that the reforms also seek to boost China's efforts to stave off a looming demographic crisis by reducing the cost of raising children. The plunging birth rate is driven by the high cost of living, low wages, long hours and little upward mobility. Much of the feedback to the reforms - including from Husaid they don't go far enough to change anyone's mind about having any, or any more, children.
In one poll, almost 70% of the 2,400 respondents said they didn't think the policy reform would reduce pressure on parents. Just 18% thought it would partly or entirely ease pressure.In Shanghai, Hu said the policy's intention was good and that she would now spend more time with her child doing outdoor activities. However, she is among many who fear that other parents
