Page 420 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
especially in Pre-K12 and higher education field. Many of online education in PC, mobile-clients have the
renowned universities in China such as Peking University, advantage of enabling users to maximize fragmented
Tsinghua University, Shanghai Jiao Tong University, time to learn, while PC cannot allow users to study in
etc. have all uploaded their special courses online for any place and at any time. Meanwhile, 95.1 percent of
students throughout the mainland to extend their study Chinese Internet users have mobile phones and devices,
services and widen their horizons (Daxue). meaning that people’s living habits are growingly based
on mobile clients, providing a foundation for mobile
Digital education in China encompasses a broad range online education. Driven by changes in user demand
of facilities and products, both foreign and domestic. It and living habits, domestic online education is shifting
includes online education platforms, e-campuses and from PC to mobile client. Among 32 programs each with
e-libraries, and the software to power them. For the time a total amount of more than 100 million yuan in online
being, many of these products remain underprovided education industry in China in 2016, 15 ones involved
and largely limited to the tertiary education sector K12 online education. The flow of capital clearly shows
in China. But large investments are being made to the development potential of K12 online education
increase access and tailor programs for schools and market (Global).
younger students. China has announced ambitious
plans to create a universal digital learning environment, Digital education combines two of the more highly
promising to provide broadband connectivity to all K12 regulated sectors in China – information communication
classrooms by 2020. To take advantage of this surge in technology (ICT) and education. So far, however,
Internet connectivity, all provinces have been asked to government policy has been generally encouraging
start digital education trials by 2015. Digital education toward foreign investment, particularly in less regulated
technologies are not noticeably different in China areas of the country’s education system. In large part,
than they are in other countries. However, it is unclear these favorable policies result from a desire for foreign
whether these technologies can succeed in China’s technology. The greatest risk for outside providers of
current education system, particularly in classrooms digital education is a change in government regulations,
that traditionally limit two-way interaction in favor of once Chinese firms have developed competitive
exam preparation and rote memorization. To get the indigenous technologies. For most outside investors,
biggest potential market, digital education providers the most promising opportunities remain at the margins
may have to switch the focus of their technologies from of China’s tightly regulated public education system,
student to teacher needs (MRR). namely in rising demand for home schooling, after-school
tutoring, vocational training and pre-school education.
China’s online education industry has expanded at There are also considerable opportunities for foreign
a rate of around 20 percent in recent years, with the investors in the publishing and provision of e-books,
market worth of 150.7 billion yuan in 2016, a year-on- digital note taking and other cloud-based services, as
year growth of 23 percent. Meanwhile, user scale also well as education software development for electronic
increased rapidly, reaching 89.27 million in the same hardware. As is often the case in China, a certain amount
period, a 21.9 percent rise from the previous year. of uncertainty surrounds the future of digital education,
Propelled by favorable policies and capital inflows, the but most current trends suggest great potential. A
Chinese online education market and user scale will large student population, rapidly rising incomes and
maintain a rapid growth rate, hitting an estimated 421.6 increasing educational attainment levels – not to
billion yuan and 241.6 million in 2021, respectively. mention an increasingly information- and technology-
More governmental spending on education, accelerated based economy – have all increased demand in China for
revision of the laws on private education and supporting education technologies that can fill existing gaps in the
policies, and introduction of relevant policies create traditional education sector. Government policy is also
broad space for the development of online education in generally positive toward foreign investment in digital
China and attract the attention of capital market. In 2016, education, although competition for this market will be
there were a total of 140 domestic online education increasingly fierce as both domestic and outside firms
investment programs with aggregate amount of more jockey for position (MRR).
than 14.886 billion yuan, including 32 worth of over
100 million yuan each. Despite a high concentration
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especially in Pre-K12 and higher education field. Many of online education in PC, mobile-clients have the
renowned universities in China such as Peking University, advantage of enabling users to maximize fragmented
Tsinghua University, Shanghai Jiao Tong University, time to learn, while PC cannot allow users to study in
etc. have all uploaded their special courses online for any place and at any time. Meanwhile, 95.1 percent of
students throughout the mainland to extend their study Chinese Internet users have mobile phones and devices,
services and widen their horizons (Daxue). meaning that people’s living habits are growingly based
on mobile clients, providing a foundation for mobile
Digital education in China encompasses a broad range online education. Driven by changes in user demand
of facilities and products, both foreign and domestic. It and living habits, domestic online education is shifting
includes online education platforms, e-campuses and from PC to mobile client. Among 32 programs each with
e-libraries, and the software to power them. For the time a total amount of more than 100 million yuan in online
being, many of these products remain underprovided education industry in China in 2016, 15 ones involved
and largely limited to the tertiary education sector K12 online education. The flow of capital clearly shows
in China. But large investments are being made to the development potential of K12 online education
increase access and tailor programs for schools and market (Global).
younger students. China has announced ambitious
plans to create a universal digital learning environment, Digital education combines two of the more highly
promising to provide broadband connectivity to all K12 regulated sectors in China – information communication
classrooms by 2020. To take advantage of this surge in technology (ICT) and education. So far, however,
Internet connectivity, all provinces have been asked to government policy has been generally encouraging
start digital education trials by 2015. Digital education toward foreign investment, particularly in less regulated
technologies are not noticeably different in China areas of the country’s education system. In large part,
than they are in other countries. However, it is unclear these favorable policies result from a desire for foreign
whether these technologies can succeed in China’s technology. The greatest risk for outside providers of
current education system, particularly in classrooms digital education is a change in government regulations,
that traditionally limit two-way interaction in favor of once Chinese firms have developed competitive
exam preparation and rote memorization. To get the indigenous technologies. For most outside investors,
biggest potential market, digital education providers the most promising opportunities remain at the margins
may have to switch the focus of their technologies from of China’s tightly regulated public education system,
student to teacher needs (MRR). namely in rising demand for home schooling, after-school
tutoring, vocational training and pre-school education.
China’s online education industry has expanded at There are also considerable opportunities for foreign
a rate of around 20 percent in recent years, with the investors in the publishing and provision of e-books,
market worth of 150.7 billion yuan in 2016, a year-on- digital note taking and other cloud-based services, as
year growth of 23 percent. Meanwhile, user scale also well as education software development for electronic
increased rapidly, reaching 89.27 million in the same hardware. As is often the case in China, a certain amount
period, a 21.9 percent rise from the previous year. of uncertainty surrounds the future of digital education,
Propelled by favorable policies and capital inflows, the but most current trends suggest great potential. A
Chinese online education market and user scale will large student population, rapidly rising incomes and
maintain a rapid growth rate, hitting an estimated 421.6 increasing educational attainment levels – not to
billion yuan and 241.6 million in 2021, respectively. mention an increasingly information- and technology-
More governmental spending on education, accelerated based economy – have all increased demand in China for
revision of the laws on private education and supporting education technologies that can fill existing gaps in the
policies, and introduction of relevant policies create traditional education sector. Government policy is also
broad space for the development of online education in generally positive toward foreign investment in digital
China and attract the attention of capital market. In 2016, education, although competition for this market will be
there were a total of 140 domestic online education increasingly fierce as both domestic and outside firms
investment programs with aggregate amount of more jockey for position (MRR).
than 14.886 billion yuan, including 32 worth of over
100 million yuan each. Despite a high concentration
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