According to a news agency report, in July last year, the Chinese authorities announced a ban on the profit-making tuition service to improve education quality. Private tuition is banned in China. This has dealt a huge blow to the private education sector, which is valued at $ 120 billion (about Rs 9,28,630 crore). China expects to see improvement in this area soon. He believes that capitalism has taken hold in the private tuition sector.
According to the new rules, apps that are targeting big students will also have to avoid any negative information. Such apps must not include gaming links or advertisements on their platform. These rules came in China only in February and now action is being taken on those who are violating the rules.
Asia Financial said that due to the move by China, New York-listed Chinese tutoring firm New Oriental Education and Technology Group has cut its workforce by 60,000. Its shares have also fallen drastically. Regulations were imposed in China last year in many sectors, among them the sector of private tuition. Due to the ban on private tuition, this sector in China has suffered a huge setback of $ 120 billion (about Rs 9,28,630 crore).
Reports suggest that private education firms in China will no longer be able to launch their IPOs and will not be able to hire foreign teachers.