{"id":7253,"date":"2021-10-05T12:48:43","date_gmt":"2021-10-05T12:48:43","guid":{"rendered":"https:\/\/www.iquanta.in\/blog\/?p=7253"},"modified":"2022-02-11T00:19:40","modified_gmt":"2022-02-10T18:49:40","slug":"china-regulation-against-ed-tech","status":"publish","type":"post","link":"https:\/\/www.iquanta.in\/blog\/china-regulation-against-ed-tech\/","title":{"rendered":"China regulation against Ed-tech"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_77 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.iquanta.in\/blog\/china-regulation-against-ed-tech\/#China_regulation_against_Ed-tech\" >China regulation against Ed-tech<\/a><\/li><\/ul><\/nav><\/div>\n<h1 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"China_regulation_against_Ed-tech\"><\/span>China regulation against Ed-tech<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<hr \/>\n<p><span style=\"font-weight: 400;\">China has announced certain sets of reforms for private education companies to decrease workload for students and overhaul the sector.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The new regulations prevent companies offering tutoring on the school curriculum from making profits, raising capital or going public. These companies can&#8217;t give tuition during weekends or vacations too.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The new regulations are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Companies and institutions that teach the school curriculum must go non-profit.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Such institutions cannot pursue IPOs, or take foreign capital.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Listed companies will be prohibited from issuing stock or raising money in capital markets to invest in school-subject tutoring institutions or acquiring their assets via stock or cash.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Foreign firms are banned from acquiring or holding shares in school curriculum tutoring institutions or using VIEs (variable interest entities) to do so. Those already in violation need to rectify the situation.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">All vacation and holiday curriculum tutoring are off-limits.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Online tutoring and school-curriculum teaching for kids below six years of age are forbidden.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Agencies cannot teach foreign curriculums or hire foreigners outside of China to teach.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">All major education companies have agreed to comply with the new rules and support the decision of the government.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Currently, the education tech industry of China is worth about 100 billion dollars.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Due to the new draft rules, the share of ed-tech companies went down by 40-50%.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The new rules are applicable both for offline and online institutes. This has already been a work in progress as some educational institutes were asked to scale back operations, and some were fined for misleading advertising.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The overall goal of such rules is to decrease the influence of ed-tech companies on the people. Such companies were changing the perception of people around education by giving rise to a &#8216;social problem&#8217;.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The white-collared jobs are on a declining trend-making most college graduates are unemployable. Although the government is trying to create blue-collared employment, people are not interested due to lesser pay and lousy perception.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The government is giving the argument that private ed-tech companies are useless. The Ed-tech industry was built to help students crack the infamous college entrance exam gaokao, the only criteria for admission into any Chinese university. It is one of the most competitive exams in the world.<\/span><\/p>\n<p><a href=\"https:\/\/www.iquanta.in\/\"><img decoding=\"async\" class=\"alignnone wp-image-7711 td-animation-stack-type0-2\" src=\"https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/02\/WhatsApp-Image-2021-12-14-at-6.21.58-PM-300x57.jpeg\" sizes=\"(max-width: 384px) 100vw, 384px\" srcset=\"https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/02\/WhatsApp-Image-2021-12-14-at-6.21.58-PM-300x57.jpeg 300w, https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/02\/WhatsApp-Image-2021-12-14-at-6.21.58-PM-1024x194.jpeg 1024w, https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/02\/WhatsApp-Image-2021-12-14-at-6.21.58-PM-768x145.jpeg 768w, https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/02\/WhatsApp-Image-2021-12-14-at-6.21.58-PM-640x121.jpeg 640w, https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/02\/WhatsApp-Image-2021-12-14-at-6.21.58-PM-681x129.jpeg 681w, https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/02\/WhatsApp-Image-2021-12-14-at-6.21.58-PM.jpeg 1280w\" alt=\"\" width=\"384\" height=\"73\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Hence, for ed-tech companies, it was a great opportunity. There are anxious parents concerned about their children&#8217;s future, and that is what these companies need. Due to this reason, the Chinese government feels that it doesn&#8217;t serve any purpose.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As per the government, high education fees impedes increasing birth rates. As the population of Beijing is ageing and the workforce is shrinking, the birth rate needs to be improved.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Recently, the government even announced the three-child policy, and for the mindset of the people to change towards having more kids, the government is trying to remove all the barriers.<\/span><\/p>\n<p>To structure your\u00a0<a href=\"https:\/\/www.iquanta.in\/cat-online-coaching\">CAT online preparation<\/a>\u00a0in an efficient way consider joining iQuanta which is a\u00a0<a href=\"https:\/\/www.iquanta.in\/test\/iconcept\">top online cat coaching<\/a>\u00a0institute and being a part of the iQuanta CAT 22 Course.<br \/>\nYou can also check out and be a part of their\u00a0<a href=\"https:\/\/www.facebook.com\/groups\/Rockthecat\">Facebook group<\/a>\u00a0for peer learning, doubt solving and free material.<\/p>\n<p><a href=\"https:\/\/www.iquanta.in\/\"><img decoding=\"async\" class=\"alignnone wp-image-7711 td-animation-stack-type0-2\" src=\"https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/02\/WhatsApp-Image-2021-12-14-at-6.21.58-PM-300x57.jpeg\" sizes=\"(max-width: 384px) 100vw, 384px\" srcset=\"https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/02\/WhatsApp-Image-2021-12-14-at-6.21.58-PM-300x57.jpeg 300w, https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/02\/WhatsApp-Image-2021-12-14-at-6.21.58-PM-1024x194.jpeg 1024w, https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/02\/WhatsApp-Image-2021-12-14-at-6.21.58-PM-768x145.jpeg 768w, https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/02\/WhatsApp-Image-2021-12-14-at-6.21.58-PM-640x121.jpeg 640w, https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/02\/WhatsApp-Image-2021-12-14-at-6.21.58-PM-681x129.jpeg 681w, https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/02\/WhatsApp-Image-2021-12-14-at-6.21.58-PM.jpeg 1280w\" alt=\"\" width=\"384\" height=\"73\" \/><\/a><\/p>\n<p>For 24*7 doubts-solving, FREE guidance and counselling and peer to peer learning, join the CAT preparation Fb group below:<\/p>\n<p><a href=\"http:\/\/www.facebook.com\/groups\/Rockthecat\/\"><img decoding=\"async\" class=\"alignnone wp-image-8002 td-animation-stack-type0-2\" src=\"https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/12\/WhatsApp-Image-2021-12-20-at-5.05.31-PM.jpeg\" sizes=\"(max-width: 400px) 100vw, 400px\" srcset=\"https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/12\/WhatsApp-Image-2021-12-20-at-5.05.31-PM.jpeg 1280w, https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/12\/WhatsApp-Image-2021-12-20-at-5.05.31-PM-300x57.jpeg 300w, https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/12\/WhatsApp-Image-2021-12-20-at-5.05.31-PM-1024x194.jpeg 1024w, https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/12\/WhatsApp-Image-2021-12-20-at-5.05.31-PM-768x145.jpeg 768w, https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/12\/WhatsApp-Image-2021-12-20-at-5.05.31-PM-640x121.jpeg 640w, https:\/\/www.iquanta.in\/blog\/wp-content\/uploads\/2021\/12\/WhatsApp-Image-2021-12-20-at-5.05.31-PM-681x129.jpeg 681w\" alt=\"CAT preparation Fb group\" width=\"400\" height=\"76\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>China regulation against Ed-tech China has announced certain sets of reforms for private education companies to decrease workload for students and overhaul the sector. The new regulations prevent companies offering tutoring on the school curriculum from making profits, raising capital or going public. These companies can&#8217;t give tuition during weekends or vacations too. The new [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7286,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[369,367,173],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.4 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>China regulation against Ed-tech iQuanta best for CAT | 2022<\/title>\n<meta name=\"description\" content=\"China recent policy tightening against the Ed-tech industry and Internet platforms is good for the long-term development of the country.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.iquanta.in\/blog\/china-regulation-against-ed-tech\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta 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