The Motives Behind China's Crackdown on Educational Technology. Pivoting has become a necessity ever since Beijing delivered a devastating blow to the private tutoring industry this past summer by banning many types of after-school . Beijing's latest move is a response to long-held public grievances about educational inequality and the resulting pressure to keep up. While 2020 and the first half of 2021 realised 53 Mega Rounds ($100M+), Q3 just delivered another 9+ with Eruditus . We think three suffice: 1) an antitrust crackdown, 2) a data security overhaul, and 3) a check on capitalist "excess.". It was a mess. China wants its edtech firms to flourish but it also wants them to toe the party line. Thursday, August 26, 2021. Global investors from Tiger Global Management to Temasek Holdings Pte Ltd. are reeling as China prepares to impose its harshest curbs yet on its $100 billion private tutoring and online education sector. China wants its edtech firms to flourish but it also wants them to toe the party line. But recently the government has taken a much . Then came the crackdown. China's ballooning edtech market is suddenly deflating thanks to new government restrictions on lucrative private tutoring companies that serve millions of the country's children. The . Concerned about high-stress education and falling birthrates, the government . China's EdTech market reached 423 million users in 2020, according to the Statistical Report on Internet Development in China, marking a 110.2% increase over 2018. In a series of sweeping regulations, the central government has taken a wrecking ball to an education and test-prep industry worth billions, the collective value of both the . Various edtech companies in China have been forced to drastically cut their employee numbers, following Beijing's latest regulatory crackdown on after-school tutoring platforms. Beijing slaps edtech unicorns Zuoyebang, Yuanfudao with steep fine over false advertising The State Administration for Market Regulation imposed a maximum penalty of 2.5 million yuan each on Big . The government believes that the edtech sector has triggered social inequality among urban and rural . Many industry watchers commented that the valuation of edtech companies fell when news of enhanced regulations for the edtech sector was released. China Economy Another group of U.S.-listed China stocks plunge as Beijing regulators crack down Published Fri, Jul 23 2021 7:25 AM EDT Updated Sat, Jul 24 2021 5:09 AM EDT Tagged with China, edtech, Tutoring. The . Chinese users of internet services have also had to modify their behaviour in 2021 to comply with a barrage of new regulations Topic | China technology E3B1C256-BFCB-4CEF-88A6-1DCCD7666635 Yuanfudao, the Beijing-based Chinese education platform, is now the highest-valued edtech unicorn globally, with a market valuation of over $15.5 billion. The Exchange spent a little time on Friday ruminating on the impact of then-rumored regulation in China targeting its edtech sector. 2021-08-27 05:20:13 Voices. New regulations from Beijing directed at the private education sector released on July 24 saw stocks in private tutoring companies plunge, with New Oriental stock value dropping 34%, TAL 27% and Youdao 34% two days later. According to a report by HolonIQ, 60 percent of all global edtech venture capital in 2020 was spent on China. In this episode, we look at what happened to edtech in China, covering regulations introduced earlier this year that are changing the way that online tutoring is conducted across China, and looking at what that means for the sector, learners and educators more generally. China's State Council and the Chinese Communist Party's Central Committee released a document that confirms what was already pretty clear: Beijing intends to continue strengthening regulation on a wide range of sectors of the economy for years to come . Beijing-based New Oriental Education & Technology Group, China's largest education provider by market capitalization, has a network of 118 schools, 1,625 learning centers and both online and . For its oversight of the rapidly expanding education industry, Chinese government goes all in on implementing education reform by carrying out a series of regulations this July. The nationwide crackdown stems from a deeper backlash against the industry, as excessive tutoring torments youths and burdens parents with expensive fees. MP3 Please SUBSCRIBE HERE. US climate envoy Kerry to visit China . Venture capital (VC) has fueled the boom, with over US$10 billion flowing into China's EdTech market in 2020, a 150% increase over the previous year. After the Chinese government issued new rules on Friday, China's edtech companies are facing an existential crisis. Harsher regulations could cloud the future of China's vibrant private education market. Relations between Beijing and China's tech giants have been complex and in flux for many years. In 2015, global EdTech companies took in more than $2.98 billion across 442 deals, and global EdTech funding jumped a whopping 58% in 2015 from the previous year.The global market is projected to grow at 17.0% per annum, to $252 billion by the year 2020. China's booming EdTech industry is under tough new regulatory scrutiny, stirring worry and doubt among the many firms that have recently cut lucrative niches in the growing online space. Beijing unveiled new rules on Saturday on the country's private education sector, barring after-school tutoring companies, including edtech companies, from earning profits, raising capital, or going public and imposing new limits on extracurricular study. Details: The State Administration for Market Regulation (SAMR) said in a statement (in Chinese) on Monday that it had imposed RMB 2.5 million ($389,000) fines each on Zuoyebang and Yuanfudao. . Tagged with China, edtech. In the first half of 2019, the wave of seeking capital in the . . A close look at the edtech tools used by parents in China demonstrates the deep-seated desire for children to stay ahead of the curve. We also learn from different places - schools, teachers, peers, books, parents . ByteDance, the Chinese social media giant behind TikTok, has laid off hundreds of employees from its edtech unit, according to a report from Chinese news source LatePost. Late on Wednesday, Xinhua News Agency reported that China's latest regulations against tutoring for profit and Big Tech is beneficial to the country's growth as it stiffens its commitment to expand its capital market, leading to a share plunge in education firms. China recently mandated that online tutoring firms must turn not-for-profit. The solution already exists, Dr Malpani believes. Last week, China shocked the $120 billion domestic tutoring industry with harsh, dramatic regulations that are nuclear options. China is in the midst of what some call the "Big Tech crackdown," but it's really many different things bundled together. July 26, 2021. 'Tougher regulation of China's fast-growing edtech sector will have financial consequences for the country's leading vendors. Beijing's toughened regulation on cram schools and the tech sector is part of a long-term, big picture strategy for societal . Humans are always learning - from the time that we are born, and learn about the colors around us and pick up the language our family speaks, to when we are older and learn how to be better at our jobs. The Chinese government did not clamp down on these industries for the sake of doing so. China's regulations could perhaps encourage foreign ed-tech companies to expand in the U.S. instead of China, where Bailey said there's still "demand, funding and an easier regulatory . This drastic move could not only destroy its $100-billion edtech market but also benefit countries like India as foreign . China's sweeping new rules in private tutoring has left private education firms facing a significant business impact as Beijing steps up regulatory oversight of a $120 billion industry that . News that the Chinese government intended to crack down further on the education technology market hit shares of public, China-based edtech companies. A survey by 100X. From Big Tech to Ed Tech: Chinese regulations target education sector. The new regulations titled "Measures for the Administration of Internet Religious Information Services" were jointly drafted by five departments within the Chinese government and will . The government of China has pulled the rug from the edtech industry, with its latest regulation. One popular commentator has separated what's going on into seven categories (in Chinese). The companies are also banned . Educational technology is an often overlooked global phenomenon. But edtech's boom came to a sudden halt when these companies' activities came under the scrutiny of Chinese authorities this past spring. These companies have come close to a complete stillstand and . As for the destination, China's Edtech companies have joined in an outbound listing frenzy following the footsteps of large tech companies. China's regulatory crackdown on edtech sector will disrupt IPO plans. Meanwhile, China's new cyber watchdog, the Cyberspace Administration of China (CAC) found in 2014, has focused on implementing the 2017 Cyber Security Law and the 2021 Data Security Law. Above all, the education policy update has had severe consequences for China's leading edtech companies, such as VIPKid, Yuanfudao, New Oriental Education Technology Group and TAL Education Group. Share prices plummeted as a result of the new regulation. The regulations have been catastrophic for leading Chinese edtech companies. China affirms tech crackdown will continue with more regulations rolling out through 2025. China's National People's Congress on Friday passed a law designed to protect online user data privacy and will implement the policy from Nov. 1, according to state media outlet Xinhua. Under Siege, China EdTech Giants Take Steps to Curb Fallout. Online companies will be prohibited from teaching young children. All edtech companies and after-school tutoring services must be non-profit and registered as nonprofit entities. China has passed the Personal Information Protection Law (PIPL), which lays out for the first time a comprehensive set of rules around data collection. Management at China's leading tutoring and ed-tech firms has been racking brains in an effort to pivot away from the once-lucrative but now moribund K-9 tutoring business. Regulations on the way for private schools and tutoring in China Posted on May 20, 2021 by Callan Quinn Posted in Ed tech, Government, News, TNE, under Asia. The staggering amount of money pumped into China's private tutoring market has led to shady practices, such as misleading advertising and use of fraud, that have disrupted the market and, in the eyes of the government, exacerbated education inequality, a huge pain point for hundreds of millions of Chinese families, even though some ed tech companies claim they try to tackle the exact same problem. Once the darlings of Wall Street and venture capital as recently as the beginning of this year, China's edtech firms are now wondering if they will be able to remain solvent long enough to see the beginning of the next. The nationwide crackdown stems . Policies issued in July by China's government restricting the country's massive tutoring industry may aim to give birth to a new era of education in China, one that eases pressure on kids to excel at all costs and diminishes the power of edtech companies. Yuanfudao, backed by . In this article, we shall understand why China has introduced such severe measures that could ultimately wipe out the country's $100 billion ed-tech industry. Read this: Days of uncertainty in the great edtech depression in China. China-based education companies ushered in the great era of IPOs in 2018 with 14 deals. Dr Aniruddha Malpani, a doctor, angel investor and vocal critic of Byju's business model, told the BBC the time is rife for a Beijing-style crackdown on edtech start-ups in India. But the clamour for regulation is growing. EdTech Series (Part 1): Building The Blume EdTech Framework. In a further blow to China's ed-tech startups, the rules also say that the education department should push for free online tutoring services across the country. In China, a drastic regulation can pop up overnight that change a whole industry. Tech Regulation in China Brings in Sweeping Changes. China Bans For-Profit School Tutoring in Sweeping Overhaul Bloomberg News July 24, 2021, 7:41 AM EDT Updated on July 25, 2021, 10:57 AM EDT The 2020-2021 EdTech funding surge continued in Q3, delivering 6 new EdTech Unicorns, now totalling 32 around the world, with the latest group coming from the US, India, Southeast Asia. The country is now forcing its $100 billion private tutoring and online education sector to go non . There is a close link between the recent fines on Yuanfudao and Zuoyebang and pressure from delegates at China's 'Two Sessions' conference for greater regulation and management of private online tutoring, both in terms of content and consumer rights. China's market regulator issued draft rules on Tuesday aimed at stopping unfair competition on the internet. Create online English learning videos and host English audio chat rooms. After posting stellar growth in 2020, Chinese education technology, or edtech, firms took a serious hit this summer. Plus, new jobs, funding, and startup support. Filipino English teachers thrived during China's online learning boom. Private equity and VC funding in edtech sector in India has shot up to $1.5 billion as of September 2020 - a 4x increase over investments in 2019! Why it matters: The new rules will end . The government of China has pulled the rug from the edtech industry, with its latest regulation. If Beijing goes ahead with its plans to create an agency to oversee all private educational platforms, as has been suggested, it will seriously affect China's edtech landscape. Educational technologies in China. News of the added oversight sent industry stocks tumbling in New York and Hong Kong. When Jack Ma, the billionaire founder of internet giant Alibaba, told China's financial elites on October 24, 2020 that their incompetence had created a severely underdeveloped financial system . Reasons Behind China's Crackdown on Edtech Firms. You can get an ad-free feed of Daily Tech Headlines for $3 a month here. China on Monday vociferously disagreed with the tech utopians' idea of 'digital education' during the COVID-19 pandemic as it forced the $100 billion online education sector to make no profits with its latest regulation that barred EdTech companies from going public, a Bloomberg report confirmed. Raviv Litman. Teach young adults (ages 12 to 35) in China and worldwide. Calls for regulation and monitoring of edtech is not new or specific to India. Beijing's flexing of its regulatory muscles is . In a country rife with regulatory risk, policy laid out for a certain field may play a decisive role in this industry's pivot point. . The regulator also issued regulatory warnings to the startups, two of China's most valuable (in Chinese) online tutoring platforms. The change in regulation has deprived many businesses of their core business concept. China's edtech assault hits investors from Tiger to Temasek. Working with BlaBla EdTech at a glance: Hiring fluent English speakers with ESL teaching experience. Beijing on Saturday published a plethora of regulations that together threaten to upend the sector. Share prices plummeted as a result of the new regulation. China's Crackdown on Tutoring and EdTech — Smart or Disastrous? Bookmark the permalink. aged under six were signed up for classes with a teacher twice a week—exactly the arrangement banned by the latest regulations governing edtech. New Delhi, Nov 21 (FN Agency) Shifting regulations targeting specific sectors like edtech and fintech in China could drive venture capital investments in other parts of Asia and India would have a lot to gain going forward in the October to December (Q4) quarter of 2021, as VC investment is likely to remain slow in a number of sectors in China. In March 2021, the Chinese Cyberspace Administration established an EdTech alliance to promote industry standards and to strengthen domestic regulations in the Ed-tech industry. Chinese edtech upended by sweeping regulations. The rules published by the State Administration for Market Regulation (SAMR) cover a . A crackdown by China's regulators on the country's fast-growing edtech companies will have financial consequences for the leading vendors, impacting the timing of several companies' initial public offerings (IPOs). The rules add to Beijing's tightening of . Why Did China Crack Down on Its Ed-Tech Industry? China's edtech assault hits investors from Singapore's Temasek and GIC to SoftBank. The stock of New Oriental Education and Technology Group (NYSE: EDU) is down 86% on the year, while that of rival TAL . . The long shadow of edtech regulations After the Two Sessions in March 2021, Yuanfudao stopped its fundraising round. Policies issued in July by China's government restricting the country's massive tutoring industry may aim to give birth to a new era of education in China, one that eases pressure on kids to excel at all costs and diminishes the power of edtech companies. After the Chinese government issued new rules on Friday, China's edtech companies are facing an existential crisis. The country is now forcing its $100 billion private tutoring and online education sector to go non . China's sweeping overhaul of its $100bn private education industry will eliminate foreign investors from much of the sector and threatens to wipe out billions of dollars of investment from . Mainland China cracked out on edtech and imposed a ban on listing/profiteering from these ventures in a sweeping message that education like healthcare was meant for public good. By 2020, China's online education market size was estimated to be nearly 260 billion yuan ($40 billion), while the overall tutoring market is upwards of $100 billion. Over the past year, edtech has seen a windfall in investment. China's tech industry alone pulled in more than $10 billion of venture funding last year from tech giants including Alibaba Group Holding Ltd., Tencent Holdings Ltd., and SoftBank Group Corp. EdTech Rumblings in China and What It Could Mean for India. In this article: . I will be discussing my own opinion on Chairman Xi's Real Intention on the crackdown of t. Claiming that education has been "hijacked by capital," the Chinese government introduced a plethora of draconian rules, including forcing . Raviv Litman is a Ph.D. student of anthropology at the University of Amsterdam. News is rife with the recent regulatory clampdown on EdTech, more specifically online tutoring, in China. Bookmark the permalink. How China's New Ed-Tech Regulations Put Filipino Teachers in a Bind. A special… Home Tribune Premium Content Opinion International The Diplomat Tech Regulation in China Brings in Sweeping Changes Tech Regulation in China Brings in Sweeping Changes The Diplomat December 21, 2021. China-based Education saw 7 IPOs and 8 M&A in 2019H1. The Chinese Government, in its latest regulation, announced its $100 Bn to go non-profit. Yesterday was a horrendous day for most, if not ALL Chinese stocks. The increased scrutiny came amid a funding boom in the sector. China's EdTech Assault Hits Investors From Tiger to Temasek. The China State Administration of Religious Affairs on Wednesday issued new regulations banning foreign organizations and individuals from posting online religious content, citing national security concerns. Beijing on Saturday published a plethora of regulations that together threaten to upend the sector. 'A decision no parent should ever have to make': Families are suing over mask mandate bans. Beijing on Saturday published a plethora of regulations that together threaten to upend the sector. Raviv Litman Anthropologist. It found more than 100 apps in violation of collecting users' personal information and ordered Didi, China's biggest ride-hailing app, to be taken off . BlaBla EdTech. China is considering asking companies that offer tutoring on the school curriculum to go non-profit, people familiar told Bloomberg News, potentially wiping out a big chunk of the billions . Get paid by the total number of published videos. Over the past year, Chinese authorities have asked all private educational institutions to scale back on operations. China's capital reign has collapsed, for now. All edtech companies and after-school tutoring services must be non-profit and registered as nonprofit entities. Nonetheless, we can also view China as being predictable since what it has been doing for the past months has been aligned with the party view on China moving forward. China announces new regulation impacting EdTech, food delivery, and music streaming, LG announces new wireless earbuds with a "whisper mode," and Samsung's The Wall display to be used at South Korean virtual production facility. The . China's two largest EdTech unicorns, Zuoyebang and Yuanfudao, were recently fined 2.5 million yuan (US$386,000) each for reputedly misleading customers with false advertising and unfair pricing . In mid-July, China's government issued new regulations that drastically limit for-profit tutoring services and prohibit foreign investment in Chinese private . 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