China’s private tutoring industry is experiencing a quiet but clear resurgence following three years of regulatory pressure, as authorities pivot subtly towards supporting economic growth and job creation. Although no official statements have been issued, industry experts and insiders report a significant shift in government policy that appears to tacitly encourage growth in the sector.
In 2021, China introduced its “double reduction” policy, a sweeping crackdown on for-profit tutoring in core school subjects aimed at alleviating the financial burden on families and reducing academic pressures on students. This move led to dramatic impacts on the private education sector, wiping billions from the market value of major education providers like New Oriental Education & Technology Group and TAL Education Group, resulting in over 170,000 job losses across the top three firms in the industry.
Previously, China’s private tutoring industry had boomed, valued at around $100 billion as parents invested heavily in education to give their children a competitive edge in the nation’s rigorous educational landscape. Yet, despite the crackdown’s immediate impact, demand for tutoring persisted, especially among parents who viewed additional instruction as critical to their children’s success.
Michelle Lee, a parent from southern China, typifies this sentiment. Despite the restrictions, she spends 3,000 yuan monthly (approximately $420) on tutoring for her children in subjects such as mathematics and English, underscoring that she sees little choice but to turn to external help to ensure her kids stay competitive. Lee’s observation of tutoring centers being less covert than before suggests a gradual relaxation in enforcement.
“When the policy first came out, those tutoring organizations were more discreet, closing curtains during classes,” Lee recounted. “But now, they seem less cautious, operating more openly.”
The government’s shift in regulatory stance has not been announced formally, yet analysts and education sector experts note growing indications that regulations are relaxing. Earlier this year, the State Council—the chief administrative authority—announced education services as part of a 20-point plan aimed at stimulating consumption and economic growth. Stocks of education companies subsequently saw significant gains, highlighting a shift in sentiment as the country faces high youth unemployment and sluggish economic indicators.
Further supporting this shift, China’s education ministry issued draft guidelines clarifying permissible tutoring in non-core subjects and introduced an “approved” list of providers. This shift signals a more structured approach, with education officials focusing on stabilizing rather than further restricting the industry.
Lynn Song, Chief Economist for Greater China at ING, noted the policy’s subtle but significant transformation. “The policy environment has shifted from restrictive to supportive, with stabilization now the main goal,” Song explained, predicting broader benefits for the tutoring sector.
Since early 2023, tutoring companies have shown signs of revival, from increased hiring to more active license renewals for tutoring centers. According to Plenum China, a research firm, the number of active licenses for for-profit extracurricular tutoring centers rose by 11.4% in the first half of the year, reflecting newfound optimism in the industry. TAL Education Group and New Oriental have both advertised thousands of open positions and expanded the number of their learning centers, a clear response to changing regulatory winds.
Executives at major tutoring firms confirmed that the government has relaxed enforcement, though with caution. The tutoring industry remains highly regulated, they noted, but as long as providers avoid teaching core subjects, they may operate more openly.
“The government’s stance is more accommodating, so long as the core curriculum isn’t directly taught,” said one executive, who requested anonymity. “This has allowed companies to adjust their services while staying within legal parameters.”
The demand for tutoring services has persisted, even during the most restrictive years of the crackdown. Many parents continued seeking ways to support their children’s education despite regulatory hurdles. Some providers, adapting to the restrictions, redesigned their offerings and used innovative marketing tactics to evade bans on core subject instruction.
For instance, English tutoring centers in Zhejiang Province shifted to teaching science concepts in English rather than traditional language classes to meet demand without contravening policy. Lisa, who runs an English tutoring business, said she had to dismiss 60% of her staff following the initial crackdown but managed to keep her school operational by adjusting her curriculum.
These adjustments also inspired new forms of private tutoring. One-on-one sessions became popular for families willing to pay a premium for tutors to come to their homes, with some sessions costing up to 800 yuan per class. Shanghai-based parent Yang Zengdong expressed concern that these rising costs would increase educational disparities. “If the double reduction policy continues as it is, the gap between wealthier families and others will worsen,” she said, citing the difficulty of choosing between expensive private sessions and dedicating personal time to help her children study.
The pivot away from strict regulation in private tutoring fits into Beijing’s broader economic strategy, which focuses on job creation and economic revitalization amid global economic uncertainties and domestic challenges. This easing could also serve as a response to growing social issues, including the staggering rate of youth unemployment, as China seeks to foster economic sectors that can offer stable employment opportunities.
“Having eliminated lower-quality players, the government is hoping the education sector can provide solutions for rising youth unemployment,” said Claudia Wang, head of Asia Education Practice at Oliver Wyman consultancy. This realignment signifies a pragmatic move by Beijing, suggesting that even ideologically driven policies can be adjusted in the face of practical socioeconomic challenges.
While Beijing remains committed to reducing academic pressures on students and financial burdens on families, the underlying pressures of a highly competitive education system remain. Despite regulatory efforts, China’s examination-focused education system continues to drive families toward private tutoring options that can boost their children’s prospects in a hyper-competitive environment.
China’s softening stance on the tutoring industry demonstrates the balancing act between ideological goals and economic pragmatism. By allowing more room for tutoring companies to operate within established boundaries, China is seeking to reconcile its social and economic policies in ways that stabilize the sector and mitigate some of the social and financial strains facing families.
Private tutoring is unlikely to return to its pre-crackdown peak, but the industry’s resilience and adaptive strategies suggest it may carve out a more stable, regulated presence within China’s education system. For parents like Michelle Lee and Yang Zengdong, this shift may bring renewed access to essential educational resources, though the costs and competitive pressures driving demand for tutoring remain.
The quiet revival in tutoring reflects both China’s evolving approach to balancing educational pressures with socioeconomic priorities and a government increasingly receptive to pragmatic adjustments in response to economic needs. As Beijing steers the industry toward a model that supports stability and growth, its gradual easing offers hope for an industry once deemed incompatible with its education reform goals.
