Page 418 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
eventually find work, too many end up in part-time, low- some 80 percent of students use the Internet at home
paid jobs. Six months after graduating, one in four Chinese – and rural areas, where only two percent of students
university students have a salary that is below the average have Internet access in their homes. The first step for
salary of a migrant worker. History, law and literature have China in addressing this digital divide will require
some of the lowest starting salaries, and also the lowest increasing connectivity, particularly in rural and inland
employment rates. Of the 50 most common graduate areas. Government funding for distance learning has
occupations, 30 percent are low-skilled and don’t require reportedly extended to over 80 percent of rural schools
a degree. But for a different group of graduates, the in central and western China in recent years, but China
contrast is striking. Engineering, economics and science will require far greater Internet penetration into rural
majors in China all enjoy high starting salaries and the households, as well as faster connection speeds and
top employment rates. These graduates fill the highest- teacher training to help educators get up to speed.
paid entry positions in the most attractive employment These incremental improvements in Internet access and
sectors of IT, operations, real estate and finance. Chinese human capital will ease the spread of digital education
tech graduates do particularly well. In 2015 the top five to classrooms and beyond, but what form the market
highest paying graduate jobs were all IT-related. The will ultimately take is still unclear (MRR).
government’s Made in China 2025 strategy to become
a global high-tech leader in industries such as advanced Though e-learning was introduced into mainland
IT and robotics has created plenty of opportunities China more than 10 years ago, only a small amount
for graduates in these fields. Not only are the starting of the Chinese populace has had access to it so far. In
salaries high, but also long-term earnings follow a starkly China, e-learning technology is more commonly used
different trajectory. Three years after graduating, the in Business-to-Business (B2B) market. The application
top 15 percent of engineering, economics and science of which can reduce staff training expenses up to 50-
graduates earn more than double the median salary for 70 percent and provide the flexibility of time and space
other graduates (Stapleton). that facilitates the learning process of the employees.
Consequently, B2B market in e-learning commerce is far
Joint Chinese-foreign educational programs and more established than the B2C (Business-to-Consumer)
institutions in China are increasingly common. These market, which accounts for the corporations and
include partnerships between Chinese and foreign businesses segment enjoying a bigger proportion of
universities, such as NYU Shanghai (New York University the market share. The rapid adoption of mobile learning
with East China Normal University) and the Joint (m-learning) is inhibiting the demand for E-learning in
Institute of Engineering (a collaboration between Sun China. By September 2015, the growth rate for m-learning
Yat-Sen University and Carnegie Mellon University). in China has reached 14.5 percent and revenues will
Increasingly popular “2+2” programs allow students to continue to accelerate with the persistent popularity
study for two years at a Chinese university and for two of mobile devices. Two buying segments in e-learning
years at a university in another country such as the U.K., market: consumer and Pre-K12 presently are exhibiting
Australia or the U.S.. Partnerships between Chinese negative growth, while they obtained considerable high
and American universities on American soil, notably growth rates in m-learning. Although Mobile learning
the Global Innovation Exchange, are also increasingly is still in its pioneering phase in China, the chances that
common. A joint project of Tsinghua University, the it would become a threat to e-learning market are still
University of Washington and Microsoft, the Global big. Besides industry competition within China, foreign
Innovation Exchange offers graduate degrees in e-learning services suppliers are entering into Chinese
technology-related fields (Michael). market successively. E-learning technology in some
developed countries, especially America, is relatively
E-learning and Online Education more advanced and diverse than in China. Thus in terms
of specialized knowledge and skills, foreign companies
Digital education is seen as a solution to many of have more technology support than local ones, leaving
China’s current educational needs. It has the potential lots of growing room for domestic e-learning companies.
to increase access to education, while lowering costs As an innovative mode of e-learning, Massive Online
and promoting a more high-tech economy. At the same Open Courses (MOOC) have successfully drawn the
time, the rise of digital education could exacerbate the attention from people all over the world. Since MOOC
existing digital divide between China’s cities – where first came to China, it has gained significant attention,
418
eventually find work, too many end up in part-time, low- some 80 percent of students use the Internet at home
paid jobs. Six months after graduating, one in four Chinese – and rural areas, where only two percent of students
university students have a salary that is below the average have Internet access in their homes. The first step for
salary of a migrant worker. History, law and literature have China in addressing this digital divide will require
some of the lowest starting salaries, and also the lowest increasing connectivity, particularly in rural and inland
employment rates. Of the 50 most common graduate areas. Government funding for distance learning has
occupations, 30 percent are low-skilled and don’t require reportedly extended to over 80 percent of rural schools
a degree. But for a different group of graduates, the in central and western China in recent years, but China
contrast is striking. Engineering, economics and science will require far greater Internet penetration into rural
majors in China all enjoy high starting salaries and the households, as well as faster connection speeds and
top employment rates. These graduates fill the highest- teacher training to help educators get up to speed.
paid entry positions in the most attractive employment These incremental improvements in Internet access and
sectors of IT, operations, real estate and finance. Chinese human capital will ease the spread of digital education
tech graduates do particularly well. In 2015 the top five to classrooms and beyond, but what form the market
highest paying graduate jobs were all IT-related. The will ultimately take is still unclear (MRR).
government’s Made in China 2025 strategy to become
a global high-tech leader in industries such as advanced Though e-learning was introduced into mainland
IT and robotics has created plenty of opportunities China more than 10 years ago, only a small amount
for graduates in these fields. Not only are the starting of the Chinese populace has had access to it so far. In
salaries high, but also long-term earnings follow a starkly China, e-learning technology is more commonly used
different trajectory. Three years after graduating, the in Business-to-Business (B2B) market. The application
top 15 percent of engineering, economics and science of which can reduce staff training expenses up to 50-
graduates earn more than double the median salary for 70 percent and provide the flexibility of time and space
other graduates (Stapleton). that facilitates the learning process of the employees.
Consequently, B2B market in e-learning commerce is far
Joint Chinese-foreign educational programs and more established than the B2C (Business-to-Consumer)
institutions in China are increasingly common. These market, which accounts for the corporations and
include partnerships between Chinese and foreign businesses segment enjoying a bigger proportion of
universities, such as NYU Shanghai (New York University the market share. The rapid adoption of mobile learning
with East China Normal University) and the Joint (m-learning) is inhibiting the demand for E-learning in
Institute of Engineering (a collaboration between Sun China. By September 2015, the growth rate for m-learning
Yat-Sen University and Carnegie Mellon University). in China has reached 14.5 percent and revenues will
Increasingly popular “2+2” programs allow students to continue to accelerate with the persistent popularity
study for two years at a Chinese university and for two of mobile devices. Two buying segments in e-learning
years at a university in another country such as the U.K., market: consumer and Pre-K12 presently are exhibiting
Australia or the U.S.. Partnerships between Chinese negative growth, while they obtained considerable high
and American universities on American soil, notably growth rates in m-learning. Although Mobile learning
the Global Innovation Exchange, are also increasingly is still in its pioneering phase in China, the chances that
common. A joint project of Tsinghua University, the it would become a threat to e-learning market are still
University of Washington and Microsoft, the Global big. Besides industry competition within China, foreign
Innovation Exchange offers graduate degrees in e-learning services suppliers are entering into Chinese
technology-related fields (Michael). market successively. E-learning technology in some
developed countries, especially America, is relatively
E-learning and Online Education more advanced and diverse than in China. Thus in terms
of specialized knowledge and skills, foreign companies
Digital education is seen as a solution to many of have more technology support than local ones, leaving
China’s current educational needs. It has the potential lots of growing room for domestic e-learning companies.
to increase access to education, while lowering costs As an innovative mode of e-learning, Massive Online
and promoting a more high-tech economy. At the same Open Courses (MOOC) have successfully drawn the
time, the rise of digital education could exacerbate the attention from people all over the world. Since MOOC
existing digital divide between China’s cities – where first came to China, it has gained significant attention,
418
