Oct 28, V7N- China appears to be easing its strict regulations on private tutoring, potentially reviving an industry that was valued at around $100 billion before the 2021 crackdown known as the "double reduction" policy. Initially aimed at reducing educational and financial pressures on families, the policy banned for-profit tutoring in core subjects like math and English, leading to significant job losses and a steep decline in market values for major tutoring companies, such as TAL Education and New Oriental.
 
Without formal policy announcements, officials are reportedly allowing tutoring companies to operate with greater freedom, as Beijing seeks to address economic challenges and record youth unemployment. Recent government moves include adding education services to a plan to boost consumption, easing the enforcement of inspections, and providing guidelines that clarify acceptable off-campus tutoring practices.
 
Tutoring companies are responding to these shifts by cautiously expanding operations and hiring staff, while remaining careful not to overtly advertise core subject tutoring. Instead, many organizations reframe courses in creative ways, using terms like “logical thinking” for math or offering English-taught science classes that avoid direct references to English language instruction.
 
Analysts suggest that the shift reflects the government’s broader goal of economic stabilization. Private tutoring, once seen as a drain on household finances, may now be rebranded as an essential tool for job creation and as a solution to educational disparities. However, some worry that without affordable options, the policy could unintentionally widen the academic gap between wealthy families who can afford tutoring and those who cannot, a concern echoed by parents like Yang Zengdong.
 
As the sector reopens, investors are cautiously optimistic, with TAL and New Oriental stocks trading at their highest levels since the policy's implementation, although still far below pre-2021 values. Industry players remain vigilant as they navigate the government’s evolving stance and seek to comply with ongoing restrictions.
END/WD/RH/