• Mathematic

    Bitcoin Articles, News, Evaluation, And Industry Insights

    MathematicBuzzle is a group of writers, economic thinkers, technologists, marketers, strategists, and overall cryptocurrency enthusiasts. The proof-of-stake system implies that Tezos stakeholders have a fundamentally diverse connection with the network than on other crypto platforms. Applied mathematics covers the branches that study the physical, biological or sociological world. Trigonometry relies on the synthetic geometry developed by Greek mathematicians like Euclid. Investors that want to convert their native currency into digital money even though investing and trading across a vast crypto network use Coinbase as their base of operations.

    Because the starting of recorded history, mathematical discovery has been at the forefront of each civilized society, and math has been utilized by even the most primitive and earliest cultures The need for math arose since of the increasingly complex demands from societies around the world, which necessary more sophisticated mathematical options, as outlined by mathematician Raymond L. Wilder in his book ” Evolution of Mathematical Concepts ” (Dover Publications, 2013).

    Mathematicians in ancient occasions also started to look at quantity theory, which “bargains with properties of the complete numbers, 1, 2, three, four, 5, …,” Tom M. Apostol, a professor at the California Institute of Technology, wrote in ” Introduction to Analytic Number Theory ” (Springer, 1976). In the 17th century, Isaac Newton in England and Gottfried Leibniz in Germany independently created the foundations for calculus, Carl B. Boyer, a science historian, explained in ” The History of the Calculus and Its Conceptual Development ” (Dover Publications, 1959).

    At the end of the 19th century, the foundational crisis of mathematics led to the systematization of the axiomatic approach This, in turn, gave rise to a dramatic boost in the number of mathematics regions and their fields of applications a witness of this is the Mathematics Topic Classification , which lists a lot more than sixty very first-level places of mathematics.

    The introduction of mathematical notation led to algebra , which, roughly speaking, consists of the study and the manipulation of formulas Calculus , a shorthand of infinitesimal calculus and integral calculus, is the study of continuous functions , which model the adjust of, and the relationship in between varying quantities ( variables ). This division into four main areas remained valid till the finish of the 19th century, although some regions, such as celestial mechanics and solid mechanics , which have been usually considered as mathematics, are now deemed as belonging to physics Also, some subjects created throughout this period predate mathematics (becoming divided into diverse) locations, such as probability theory and combinatorics , which only later became regarded as autonomous places of their personal.

  • What’s next for China’s after-school tutoring industry?
    Personal Tutoring

    What’s next for China’s after-school tutoring industry?

    At a 24-hour coffee shop in Beijing’s Haidian district, private tutor Ming Tian was explaining a math question to students. A few blocks away in a 20-story building housing scores of after-school tutoring facilities, classrooms and offices were empty.

    Huang Zhengxin, the father of a daughter in middle school and a son in elementary school, was anxiously looking for alternative summer tutoring channels for his children. Meanwhile, Sun Ke, a veteran employee of an online education company, had just lost his job.

    So it goes as China’s sweeping overhaul of the giant tutoring industry creates millions of personal dramas across the country. Instructors are being thrown out of work in droves and Chinese parents now face new worries about securing their children’s futures. The upheaval grew out of a government clampdown unveiled in July that bans all tutoring related to the core school syllabus during vacations and weekends for students in elementary and middle school, while barring private tutoring companies from going public or raising foreign capital.

    When the State Council, China’s cabinet, issued the new rules last month, the tutoring industry was just like “a file on a computer desktop; selected and deleted,” said Wang Lin, teaching head of a large online education company.

    More than $100 billion was wiped off the market value of three U.S.-traded Chinese education giants — TAL Education, New Oriental Education & Technology, and Gaotu Techedu — compared with the stocks’ highs earlier this year.

    A week after the new rules were released, Zhangmen Education laid off more than 1,000 employees and terminated the leases on two of its office buildings. Zhangmen had just floated shares in New York in June. TikTok owner ByteDance is laying off thousands of employees working on preschool education and ed-tech products, people close to the company told Caixin.


    Residents walk by a large building housing tutoring services in the Haidian district of Beijing on Aug. 15. (Photo by Zhang Ruixue/Caixin)

    Comply to survive

    After the initial shock — shutting down classes, laying off employees and closing offices — education companies now face a common question: What do they do next to survive?

    The answers will vary from company to company, but as they pick up the pieces, China’s tutoring enterprises are finding a range of opportunities.

    After investors’ initial panic, the regulatory crackdown will bring transformation opportunities for the industry in the long term, said Ge Wenwei, partner of Duojing Capital, an education industry-focused research and investment company.

    There is plenty of room in the sector for new products, said Wang Jinjing, a managing partner in charge of education and training at Oliver Wyman. With society rapidly developing, the requirements to enter the workforce of the future may differ greatly from today, while schools are often slow in updating their programs, she said.

    “What capabilities will our next generation need to compete on the global stage 20 years from now?” Wang asked. “Parents will really love to pay for high-quality education products designed for the future … growth potential is very good.”

    In addition, local education commissions need new communications technology to advance development. Compared with individual schools, education commissions usually have larger purchase orders and deeper pockets, Wang said.

    The new rules require all private companies that teach compulsory school subjects to become nonprofits. Beijing plans to require companies to complete the transition to nonprofit status by the end of this year, Caixin learned from staff at the Beijing Municipal Education Commission. Some municipal education authorities in Shaanxi Province ordered companies to complete the change by October.

    The Beijing education authority suggested a change in focus to sectors that are not affected by the new regulations, including high school tutoring, vocational education, all-around education and hybrid business models, Caixin learned.


    A school that offered after-school tutoring in Bejing is now being renovated. (Photo by Zhang Ruixue/Caixin)

    A hybrid business model under the new policy would mean providing tutoring in school subjects from 6:30 p.m. to 9 p.m. on school days while offering other subjects on weekends and holidays, such as sports, music and arts. This model could help companies maximize student retention and reduce the risk of massive refunds. Businesses would have to spin off their school-subject tutoring operations and become nonprofit organizations, while activities focusing on teaching nonschool subjects could continue as assets of the companies as long as they are managed separately in accordance with the laws.

    Under the latest interpretation by the Ministry of Education, school-subject tutoring refers to all off-campus classes on ethics, Chinese, history, geography, math, foreign languages, physics, chemistry and biology.

    For publicly traded companies, adopting a hybrid business model could win them more time to expand into non-school-subject training and retain their status as listed companies, but it is inevitable that they will shrink. For major tutoring companies such as New Oriental, TAL and Gaotu, the school-subject tutoring business can account for 50% to 80% of total revenue.

    Some U.S.-traded Chinese education companies are prepared for delisting and privatization. OneSmart International Education reported on Aug. 4 that it received a letter from the New York Stock Exchange saying it is below compliance criteria, as its stock price was less than $1 over 30 consecutive days. The company has six months to boost its share price to avoid delisting. More than a dozen U.S.-listed Chinese education stocks are trading close to $1.

    Among major players, only Gaotu has made clear plans to switch to vocational education. The company is shutting 10 of 13 offline tutoring centers across the country and idling more than 10,000 people, about a third of its staff. New Oriental, Tal, Tencent-backed homework tutoring app Yuanfudao and Alibaba-backed Baidu edtech spinoff Zuoyebang have signaled business expansions or launched new products but have yet to make major shifts.

    “Nobody has a clear mind how to transform,” an executive at an online education enterprise said. “We are trying all-around education, after-school care, collaboration with public schools and vocational education, but their sizes are all far from becoming the core business.”

    Without tutoring in compulsory school subjects, scheduled classes across the tutoring industry will decline 61%, according to a report by China International Capital. Revenues of New Oriental will drop 43% and of TAL, 67%, the report estimated.

    Tutoring companies can still offer classes during school days, but all classes have to end by 9 p.m. “If students finish their homework at 8:30 p.m., it doesn’t leave much time to take after-school classes,” said an executive at a regional after-school training company. “We used to schedule eight classes on weekends, now on weekdays we can schedule only five.” He estimated the company’s revenue would fall by 60%.

    For online education companies, the major compliance change will be switching from live online classes to recorded courses. Zuoyebang and TAL started to take preemptive steps in June to switch to recorded courses. But the Beijing education commission warned companies that in the future recorded courses could be defined as educational publications, subject to licensing requirements.

    Industry giants with large physical campus assets, such as TAL and New Oriental, are also exploring the after-school care business. The Ministry of Education encouraged public primary and middle schools in urban areas to provide two-hour after-school programs in line with parents’ working hours as well as summer programs. Such programs, run by schoolteachers, should help students with homework and conduct activities such as reading, sports and interest groups, but they cannot teach school syllabus content.

    Parents have complained that programs run by schools cannot meet their educational needs. A primary schooler’s parent said no one in his child’s class has enrolled in the school’s summer program. “Kids have nothing to do there,” the parent said. “They can’t learn anything.”

    The head of a public school in Beijing told Caixin that the school programs charge only a minimal fee and provide just basic care. “Kids are summoned to classrooms to sit for a whole day,” he said. “Kids are not happy. Teachers are not happy. And parents are not satisfied either.”


    A notice seeking a new tenant is posted on the front door of a closed after-school tutoring business. (Photo by Zhang Ruixue/Caixin)

    New opportunities

    While the policy change upends the industry, it also presents new opportunities. The crackdown on after-school tutoring aims to bring the focus of education back to school campuses. Some companies are turning their focus to providing complementary services to schools. The government has also given a green light for public schools to purchase after-class services from third parties using government subsidies.

    Beijing Lanxum Technology, which focuses on Chinese language teaching, recently said it is expanding services into drama and arts appreciation classes provided as part of on-campus after-class programs.

    Shenzhen Dianmao Technology has been providing coding courses, teaching materials and teacher training for schools since 2019. The company works with more than 21,000 schools in China. But compared with its core consumer-facing business, the profit margin on school services is thin. Dianmao said it uses school entry as a way to popularize coding education and nurture the market rather than as a focus on profitability.

    Li Tianchi, founder and CEO of Dianmao, said he expects more competitors will enter the school service market under the new policy. Dianmao aims to increase the share of school services in its total revenue, but this will require an accurate understanding of schools’ needs and the policy environment, Li said.

    Another service that schools need is help building information-based platforms. For example, Singapore’s Temasek-backed Yiqizuoye since 2011 has been providing free services to public primary and middle schools, including a platform to help teachers prepare courses, assign homework and review students. As the service is free, the company’s revenue relies on its K-12 online tutoring courses.

    At the request of the interviewees, the names of parents, teachers, employees and schoolmasters are all aliases.

    Read also the original story.

    Caixinglobal.com is the English-language online news portal of Chinese financial and business news media group Caixin. Nikkei recently agreed with the company to exchange articles in English.

  • The Collapse of China’s Online Tutoring Industry Is Taking American Educators Down With It
    Personal Tutoring

    The Collapse of China’s Online Tutoring Industry Is Taking American Educators Down With It

    The sky was still pitch-black when Anna Whitehead rose from bed to begin teaching for the day. It’s a routine she has grown accustomed to over the past two years—waking up around 4:40 a.m. and logging on, bleary-eyed, to teach English to a cadre of children in China.

    Except this time, on Aug. 5, the routine was interrupted.

    Whitehead, who on top of being an online English-language tutor works full-time as a high school teacher in a traditional classroom in Alabama, had received a frantic text from the mother of one of her Chinese students overnight. GoGoKid, the online tutoring platform that Whitehead contracts with to supplement her family’s income and help make ends meet, was shutting down immediately.

    She checked her email, hoping the mother had misunderstood, and found a message from the company confirming its demise. “Dear teachers,” the email began. “This letter is to inform you that as of Aug 5th 2021, GOGOKID will suspend the curriculum offered to all Chinese students. This decision is in light of the recent educational policy revisions in China. All classes starting on Aug 5th will be cancelled from the system.”

    The language—“suspend the curriculum”—was a bit vague, but the message was crystal clear: It was over.

    Whitehead, who’d had 25-minute classes lined up back-to-back throughout the morning, watched in horror as each one disappeared from her schedule.

    “It was the worst possible outcome,” she said in an interview the day after the email came through. “I could’ve at least given them an awesome lesson and told them goodbye. It just felt like the rug was yanked out from under us.”

    For many of the thousands of Americans who tutor through GoGoKid, the news was shocking but not entirely surprising. They were bracing for some degree of changes, following China’s recent crackdown on tutoring. But even if the company was forced to shutter, few tutors expected it to happen this soon—or this abruptly.

    “We had heard, about a month ago, that there were some sweeping regulations coming to China, so I had an idea something would change,” said Sharisse Quinones Robinson, an online English-language tutor for GoGoKid who lives in DeLand, Fla. “But I didn’t know it would be this severe, and I didn’t know we’d get zero notice.”

    GoGoKid, an education product under Beijing-based company ByteDance (which also owns TikTok), collapsed overnight. Other companies in the space are slowly crumbling. Days before the GoGoKid email went out, rival service Magic Ears told teachers that it, too, would wind down its services over the next six to 12 months. Competitors such as QKids, Landi English and others have followed suit, saying that they would allow teachers to tutor until Chinese families’ pre-paid class packages run out. And recently, tutoring behemoth VIPKid sent out a notice to its foreign teachers saying that while it planned to continue to operate as a tutoring company in other countries, its business in China had only “several months” left.

    Boom — and Bust

    Quinones Robinson wasn’t wrong about a major shakeup to China’s online tutoring market. But she, like many others, underestimated its extent. In late July, the country rolled out new regulations that severely limit for-profit tutoring services and bar foreign investment in private education companies. It comes after years of enormous growth for China’s tutoring sector, including the emergence and expansion of a number of platforms that connect young children in China with native English speakers overseas for live, one-on-one language lessons.

    By 2019, VIPKid, a major player in the online English-tutoring market, claimed to contract with nearly 100,000 American and Canadian tutors who served a combined 600,000 children in China. (VIPKid declined to share current numbers.) Qkids, meanwhile, claims on its website that it connects “over 1 million international young learners” with educators. The exact reach of these companies—this industry—is not clear, but their collective footprint is massive, global and estimated to be worth billions of dollars.

    The arrangement worked well for both parties. Some Americans had finagled it into a full-time job, but more often, the platforms drew teachers who didn’t make enough money in the classroom alone to cover the bills. Many viewed tutoring as a flexible, fortuitous “side hustle,” a work-from-home slice of the gig economy. In China, wealthy and middle-class parents saw private English tutoring—especially led by native English speakers—as a way to get ahead, a canny edge on other students against whom their own children would some day have to compete.

    While Chinese families have been forking over the equivalent of tens of thousands of U.S. dollars to support their children’s private educations after regular school hours—often at night, before bedtime—American tutors have been raking in up to $22 an hour by waking at the crack of dawn to squeeze in a few lessons before their own families wake up and the typical workday begins.

    The official reason for the crackdown is that the financial pressure on Chinese families and academic pressure on Chinese children has become untenable. The high-stakes culture around education in China—and the subsequent costs associated with it—has become so fraught that many parents say they can’t justify having another child, which the Chinese government now encourages. It would simply break them financially. Recognizing this strain—and the declining birth rate it has perhaps led to—the Chinese government decided to act.

    One unofficial reason for the new regulations, however, could be that companies like GoGoKid and VIPKid have provided Americans with unfettered access to young, impressionable Chinese children. As tensions between the United States and China escalate, many observers speculate that the Chinese government wanted to curtail Western influence on its youngest minds.

    Americans who tutor for VIPKid and GoGoKid believe it’s a combination of those reasons. They have certainly seen first-hand the high expectations set for children in China.

    “I have one student who said, on a Saturday, ‘I have 13 hours worth of class today,’” Whitehead recalled. “I said, ‘Wow,’ and she said, ‘Oh, it’s not so bad. I have a friend who has 17 hours.’”

    Quinones Robinson used to teach a 5-year-old whose lesson began at 8:30 p.m. local time, and she said it was difficult to watch.

    “He was exhausted. He was falling asleep,” Quinones Robinson said. “These kids are worked so hard. … Part of me thinks this will be good for them.”

    Joe Madrid, an American tutor for GoGoKid who now lives in Chiang Mai, Thailand, said he’s taught kids who describe staying up doing their homework till midnight or 1 a.m. and going to training centers on weekends. The pressure and the burden on families are real, he said. But he thinks the new regulations have more insidious motivations as well.

    “Do you really want a country that’s your adversary teaching your children?” Madrid asked, incredulous. “We have contact with these kids every day. … It seems like a strange thing to me.”

    A One-Two Punch

    Whitehead, the tutor based in Houston County, Alabama, has been a classroom teacher in the U.S. for eight years. Her husband is also a teacher. Their combined income from working in brick-and-mortar schools was not enough to cover basic needs. “Out of desperation,” Whitehead signed up to be an online English-language tutor a couple of years ago. It would end up being one of the most meaningful decisions and experiences of her life, she said.

    Her monthly take-home pay from her full-time teaching position is about $2,500 to $2,800. She was bringing in another $1,500 to $1,800 a month by teaching 20-25 hours a week on GoGoKid and said that money is “absolutely essential” to her family’s livelihood.

    “There are a lot of teachers who do this to make their ‘mad money,’ if you will,” Whitehead explained. “I do it for Christmas gifts, for paying credit card bills, for paying normal bills. It doesn’t just pad my income. It helps me stand up straight with my income.”

    Anna Whitehead GoGoKid Tutor
    Anna Whitehead, a high school teacher in Alabama and former online tutor with GoGoKid, poses with a puppet she used during English-language lessons with children in China. (Screenshot from Zoom)

    The timing stings. Whitehead and her husband recently bought a new house. “There has been debt incurred because of that, so it’s a tremendous financial blow,” she said.

    For Quinones Robinson, online tutoring allowed her to leave an office job that she’d begun to resent and spend more time at home with her children. In 2018, when she got started with VIPKid and GoGoKid, she was a single mom who taught a few sessions in the mornings before work. In no time, though, she was making as much money tutoring as she was from her office salary and decided to hand in her resignation. For three years now, she said, she has been working 25 hours a week from home, in her pajamas, instead of 40 hours a week in business attire at an office: “It’s been awesome.”

    Quinones Robinson was making $2,400 to $2,600 a month before GoGoKid’s “Dear teachers” email came through earlier this month and turned her world upside down. She and her husband also bought a new home back in December. “We have to pause for a moment,” she said about her family’s finances and lifestyle. “But I’ll figure this out, whether it’s through Instacart shopping or something else.”

    Whitehead is confident she will find the money elsewhere, too—she mentioned interviewing for other jobs, selling “aggressively” on Teachers Pay Teachers and donating plasma. The harder blow, she said, is being cut off from the children that she has come to know and, by her account, love. When the pandemic began, many families shipped her face masks to make sure she was protecting herself. Some have sent her letters in the mail and gifts on her birthday.

    “This is the first day in two years I haven’t gotten up to see them,” Whitehead said on Aug. 6, through tears. “It’s extremely emotional. … I have had the honor of being in their homes, seeing their families, meeting their pets, and hearing about injuries and favorite toys. It’s so different from the American education setting.”

    Whitehead is connected to some of her students’ families on WeChat, separate from the GoGoKid platform. But others are “completely gone,” she said. She doesn’t know their real names. They live thousands of miles away. “They’re just gone. That’s the hardest part.”

    One student, a girl called Tongtong, is among those that Whitehead feels she’s lost forever. On a video call for this story, she held up a drawing that Tongtong had made for her and then rattled off personal details about the girl: She wanted to be a lawyer. She has a pet bird. Her grandmother has a garden. She gets up every morning before 6 to read.

    “I know these kids’ hopes. I know their dreams. I know their frustrations,” Whitehead said. “A million miles away, it’s so familiar.”

    Forced Underground

    Within hours of GoGoKid’s announcement to shut down, parents in China and tutors in America began scrambling to find one another. Parents in China set up virtual private networks to log onto Facebook, which is typically blocked in the country, and join private groups of GoGoKid teachers, searching for their child’s tutors by sharing screenshots from the app and listing usernames. Tutors, in turn, downloaded WeChat and listed themselves under the names they go by on GoGoKid (Quinones Robinson, for example, is “Teacher Edith”).

    Everyone, it seemed, was frantic and desperate to be reunited after their GoGoKid accounts suddenly went dark.

    One parent in China who found her way into a private Facebook group of GoGoKid teachers responded to questions via Facebook messenger, saying, “It is hard for me to accept the abrupt ending like this. I do believe many other parents should feel the same.”

    The parent, who asked that her name be withheld since she is not supposed to be seeking out foreign educators, said that teachers and parents had formed WeChat groups and started Google Docs to share contact information. On Aug. 6, she said that some people had found who they were looking for.

    “It is kind of like searching for your friends after the war,” she said. “Maybe I will never find them, since there are more than 10,000 teachers on GoGoKid. You cannot say how big [a] deal it is during your whole life. But the feeling of loss and being deprived would always be there.”

    On Aug. 8, she followed up to say she had found her son’s teachers. “Wonders happened,” she wrote.

    Parents and tutors who were shut out of GoGoKid have wasted no time trying to recreate the arrangement on their own. Some of the parents of Whitehead’s students have found her and have asked her to continue teaching their children, through private lessons. She’s not sure exactly what that would look like, but imagines it could take place over Zoom and involve a lot of screen-sharing.

    “It’s not just my families,” Whitehead said. “It’s all over. They’re desperate.”

    Quinones Robinson had one parent contact her already. The child’s mom messaged her and said, “I found you!” And Madrid, the tutor who lives in Thailand, has already taught a private lesson to a student whose parent he was able to reconnect with on WeChat.

    “The mother is not happy this happened, but she has more control now over what her child learns,” Madrid explained. “Now, we work together. I show her the lessons, she says, ‘This is what I want.’ It’s more collaborative.”

    The same Americans who worry kids in China are being pushed too hard to excel are now helping parents set up an underground tutoring market. But many say that the continuation of private education services is inevitable, so why bow out now?

    “Sometimes I feel guilty contributing to this constant education,” Whitehead said. “But the thing is, these parents are going to find a way. The way the society is set up, their future depends on what their children do.”

    The Fate of the Others

    GoGoKid may be gone, but other tutoring companies hope to hang on—some for mere months, and others for good.

    In a recent email to teachers, Magic Ears leadership laid out a sobering future for the company.

    “To be clear, the growth of the online ESL [English as a Second Language] industry is no longer being encouraged and it will not be permitted to expand,” the email said. “The new regulations set in place will restrict activity for all ESL companies based in China, it will shrink the industry and eventually it will be dissolved entirely. All companies, including Magic Ears, have downsized. We are now running on only a quarter of the staff that was initially supporting our students and teachers.”

    The email goes on to say that the Chinese government will allow tutoring companies to honor their contractual obligations to parents who have already purchased bulk class packages. Some parents had purchased “many months or even a year of classes in advance.” The company expects to offer its final lessons in about a year’s time.

    VIPKid emailed teachers on Aug. 7 with its own update.

    “First and foremost, let us be clear that we are confident that VIPKid’s business will remain operational,” the email said.

    Like Magic Ears, VIPKid will let parents in China who have purchased class packages finish out the lessons they have already paid for. “VIPKid teachers can still count on work for several months with students in China,” the notice reads.

    After those classes have been taught, VIPKid’s service in China—at least as it currently exists, pairing North American tutors with Chinese children—will come to an end. But the company’s “long-term vision” involves expanding tutoring services into other countries, subjects and age groups. In the past year, VIPKid has been piloting a partnership with BookNook to provide reading services to students in the U.S. and is developing another service for adult learners across the globe.

    “We expect these teaching opportunities to grow in the coming months,” VIPKid told teachers in the email. “It is our intention to minimize the impact to teachers.”

    A spokesperson for VIPKid declined to share specific details around how much longer its one-on-one tutoring service in China may run, but said that as of Aug. 7, families in China can no longer purchase new classes with foreign educators.

    Many tutors who have ongoing contracts with VIPKid are not optimistic that the company can pull off the international expansion. Chatter in private Facebook groups tends to be fatalistic.

    The day after GoGoKid shuttered, Quinones Robinson woke up early and taught a child through VIPKid’s platform for the first time in a long time. She plans to tutor on VIPKid for as long as she can get bookings. But, expecting that VIPKid will fold soon, just like the others, she said she’d be building out her own private tutoring business in the meantime.

  • New Restrictions on Private Tutoring Industry: Motivations and Reactions
    Personal Tutoring

    New Restrictions on Private Tutoring Industry: Motivations and Reactions

    The recent announcement of sweeping new restrictions on China’s over $100 billion private tutoring industry has sent education stocks tumbling and investors reeling, led private tutoring schools to curtail expansion and lay off teachers, and left many families wondering how to obtain the extracurricular tutoring necessary for their children to succeed in China’s hyper-competitive, exam-driven educational system. Bloomberg offered an overview of the broad crackdown on an industry that has been criticized for being “severely hijacked by capital,” including a bullet-point summary of the new measures:

    • Require private companies that teach compulsory school subjects to go non-profit.
    • Ban them from going public or raising foreign capital.
    • Ban all tutoring related to the core school syllabus during vacations and weekends — the prime hours for such companies.
    • Forbid outright acquisitions.
    • Banned foreign firms 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
    • Forbid online tutoring and school-curriculum teaching for children under 6 years old.
    • Ban teaching of foreign curriculums or hiring foreigners outside China to teach. [Source]

    Although the regulatory changes were long rumored, their scale and severity dismayed many observers. A Shanghai-based private equity (PE) investor whose firm invests in online education apps for children commented that “Every company is going to take a hit with large layoffs coming. There is zero VC (venture capital) and PE investors can do at the moment. We are all waiting for death.” CDT Chinese editors quoted an anonymous industry employee’s lament on Weibo: “I just thought I was going to work. I never imagined I’d be joining up with a ‘criminal gang.’”

    There has been much speculation about the underlying motives for these restrictive new policies, which emerged against a backdrop of increasingly assertive central government regulatory authority including a campaign to rein in tech companies; rising public concern about academic competition and inequality; and government attempts to encourage citizens to have more children.

    A July 31 piece in The Economist linked new restrictions on the online-education business to the broader antitrust crackdown on tech giants such as Alibaba and Tencent:

    […] But in the months since then the scope of the regulatory crackdown has grown ever wider. China’s two internet giants, Alibaba and Tencent, are being worked over by the antitrust authorities. Earlier this month Didi Global, a ride-hailing service, was caught in the net just days after it listed in New York. And in the past week the education-technology industry has become a target. New regulations bar any company that teaches subjects on the school curriculum from listing abroad, having foreign investors or making profits. When it comes to teaching schoolchildren, no one should get rich. [Source]

    James Palmer, writing for Foreign Policy, placed more emphasis on the social impetus and implications of the decision, as well as rising xenophobia:

    It’s tempting to relate the regulations of private education to Beijing’s war on technology companies and monopolies—and regulators are certainly empowered by the government push against private business. But these new measures also reflect a widespread belief in China that the private tutoring sector has bad effects for urban upper-middle-class parents and children, both in costs for the parents and the psychological impact on children.

    […] The measures are also part of growing xenophobia in China. The Chinese Communist Party (CCP) spends a lot of time worrying about ideological education. Measures restricting the study of U.S. and world history, for example, were put in place years ago. As the CCP sees it, banning foreign curricula and foreign teachers could prevent the creeping influence of foreign ideas and discourage Chinese students from applying to overseas universities. [Source]

    Commentator Chang Ping, writing for Deutsche Welle, framed the crackdown on both private schools and after-school tutoring companies as an attempt by the CCP to impose greater ideological control on the curriculum by monopolizing the educational system and reducing diversity within the educational sphere:

    Social media summaries [of these new policies] have stressed the fact that students no longer need to take an English-language exam in the final year of primary school, and that “A Student Primer on Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era” has become a required part of the curriculum. So which is it: is studying English putting too great a burden on students, or studying “Xi Jinping Thought”?

    […] In the absence of underlying concepts such as democracy and freedom, a system of “moral education” that purports to reduce the burden on students is groundless, a tree without roots. Beneath its pleasant guise, the government’s high-profile crackdown on off-campus tutoring institutions and private education is essentially a pretense to monopolize education and centralize brainwashing. If “Xi Jinping Thought” becomes a compulsory part of the school curriculum, then extracurricular English tutoring can be viewed as a kind of private-sector remedy. In these circumstances, cracking down on off-campus tutoring institutions and private education deprives people of their right to receive a diverse education. [Chinese]

    In China Business Review, Hannah Feldshuh associated the crackdown on the education industry with the government’s ongoing efforts to increase China’s lagging birth rate:

    Rising costs of living, a winner-takes-all college entrance system, and largely entrenched gender roles that place the burden on women to juggle work and family all play into Chinese millennials’ apathy toward having bigger families. In response to these multipronged factors, the government has recently turned its focus to the industries that it sees as adding to the pressures and expenses of raising children. 

    The education industry stands to lose the most from the government’s current approach, through impacts on personnel, direct restrictions on certain services, and potentially permanent limitations on consumption that could cripple the industry, especially foreign players.

    […] China’s after-school tutoring and extracurricular market is a large and growing sector, viewed by many as crucial to ensuring children’s long-term educational and career success. A study of China’s tutoring market estimates that the sector had more than doubled from 2011 to 2021, from RMB 203.2 billion to a projected RMB 564 billion by the end of the year. As of 2017, over 50 percent of middle and high school students enroll in after school tutoring, with 21.9 percent of elementary schoolers and 12.7 percent of kindergarten students enrolled. 

    In recent months, regulators have focused on means of restricting educational expenses, viewing them as key contributors to citizens’ hesitancy toward having more children. China’s after-school tutoring and extracurricular market is a large and growing sector, viewed as crucial to ensuring children’s long-term educational and career success. [Source] 

    Apart from the inevitable dislocations that this long list of new restrictions will bring, it remains to be seen whether they will achieve the desired policy goals or tamp down any of the economic and educational inequalities that contribute to public anger and social instability. Writing for Bloomberg, Adam Minter opined: 

    In late July, the Chinese government decreed that companies in the after-school tutoring industry could no longer make a profit, raise capital or go public. The goal was to reduce pressure on parents and children consumed by a fear of falling behind in China’s ultra-competitive education system. In time, officials hope, a more equitable system will encourage couples to have larger families and boost the country’s lagging population.

    These are worthy goals. But the government has misdiagnosed the problem. “Cram schools” are a rational response to a system that lacks the resources to meet the needs of an ambitious middle class. A ban will in all likelihood force the private industry underground, where wealthy parents will have the means to hire tutors. That will leave middle-class parents, already anxious about the future, priced out of one of the few services that they think will boost their children’s chances of success. [Source]

    The Guardian’s Helen Davidson quoted Dr. Liu Ye, a sociologist and senior lecturer in international development at King’s College London, who pointed out that the reforms do not address a state education system that remains deeply unequal and highly competitive:

    The [private education] supply catered to the demand from urban families. […] 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.

    […] It’s no good isolating private tutoring if we don’t address the uneven distribution of education provision [across China] … The crackdown hasn’t been accompanied by more policy proposals to reduce unequal distribution of education provisions, resources and opportunities. [Source]