According to Bloomberg, China’s crackdown on tutoring resulted in a rapid rise of fees.
First, the Chinese authorities intended to equalize the rich and the poor. Currently, only wealthy parents in China can pay for individual classes for their children.
A number of Chinese schools have banned private tutoring, as well as lessons on weekends. Online tutoring in China is facing hard times. Besides, commercial organizations are not allowed to provide such services.
This situation has led to an increased demand for teachers working at home. For example, in Shanghai, the tutor rate has surged to 3,000 yuan ($463) per hour. In Beijing, some teachers may earn about 500 yuan ($77) for an hour of in-home tutoring, and 7,000 yuan ($1,100) for a month. The earnings of tutors are equal to those of teachers in public schools.
According to analysts, further clampdown on this issue will cause a rise in the cost of such services. At the same time, self-employed tutors are at risk of heavy fines. In the middle of this month, Beijing Municipal Education Commission fined six educational institutions and one private tutor for illegal educational activities.
The demand for tutoring services is currently on the rise. Hugo Guo, a specialist from Shanghai, thinks that the new government measures will lead to an increase in spending on out-of-school education. This service is much in demand. Moreover, under the current system of enrollment in higher education institutions, no one can do without tutors.
Innovations related to the crackdown in the field of online education have affected a number of Chinese companies. The stocks of most of them have plunged. Thus the companies have lost billions of dollars. For example, the company ByteDance, owner of the social network TikTok and a number of popular services, fired several hundred employees involved in online education. After the new measures were introduced, many educational applications closed, while others changed their field of activity.
