India's tuition pandemic needs a cure
- Chetan Bhagat
- Updated: Aug 27, 2021, 22:35 IST IST
Why is China cracking down on edtech? We face the same problem but must find a different solution
Recently, the Chinese government announced a bold, sweeping and almost draconian crackdown on its booming educational tuition sector. Under its new policy, private tutoring businesses have to restructure as non-profit companies. They are banned from listing on the stock market or raising foreign capital. They are prohibited from offering tutoring classes on weekends and school holidays. Parents and students are being encouraged to report schools and teachers who make extra income through private tutoring.
The consequences were immediate. Shares of Chinese edtech companies listed abroad crashed, losing value worth tens of billions of dollars or thousands of crores. Many of these companies are staring at bankruptcy.
The consequences were immediate. Shares of Chinese edtech companies listed abroad crashed, losing value worth tens of billions of dollars or thousands of crores. Many of these companies are staring at bankruptcy.