Page 368 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
firms from buying private kindergartens via share education to 563. The new guidelines provide
sales or by cash. The move could roil a private greater clarity for foreign schools and suppliers
education market estimated to be worth $260 wishing to benefit from China’s expanding private
billion and which has been forecast to see deals education market. However, investment in schools
worth billions of dollars in 2019. The move by accessible to Chinese children is only possible
Beijing is the latest regulatory crackdown to rattle by Chinese investors, with the contracting of
investors, following its moves to rein in sectors foreign independent school brands via service
from online lending to gaming (Jourdan). China will agreements. A 64 percent increase in the five years
explore the establishment of a third-party quality to 2018 mean the latest figures revealed 245,500
accreditation and evaluation system for private students enrolled in international private K-12
schools, according to the Ministry of Education. education in China. Private education expenditure
Applying the evaluation results, private schools has risen among Chinese families, a result of a
will be guided to better serve social needs and growth in [China-wide] prosperity. It is unclear
deepen reform. The government supports high- how this may be affected by a recent economic
level private schools with distinctive characteristics levelling-off, and the ongoing ‘trade war’ with the
to cultivate their own disciplines, majors, courses, US, though some have speculated it is already
teachers, and management system to improve the affecting higher education. There is sufficient
overall quality of education, according to the plan. demand by enough wealthy Chinese parents in
Meanwhile, the country will promote the building China for an international style of education for
of a social credit system for private education. their children, that the market is expected to
Measures include improving the incentives and expand at pace, regardless of economic influence.
disciplinary mechanisms for education credit, Another growth factor is Beijing’s amended “two-
exploring a credit archive system, enhancing child” policy, as well as an increased awareness
information disclosure, and strengthening social among Chinese parents of the benefits of
supervision (Xinhua, Third Party Evaluations). international education, and the recent moves
to make it easier for foreign investors to run
That being said, the number of private schools schools in China. A Chinese curriculum, integrated
in China reached 183,500 in 2018, an increase with some international modules and language
of 5,815 over the previous year, official statistics teaching that retains local culture and history,
showed. Private schools accounted for 35.36 while introducing international elements to
percent of the total schools in the country. prepare children for global higher education is
There were 53.78 million students studying in what many parents desire. Despite the growth in
private schools in 2018, up 5.03 percent from Chinese-owned international schools, growth to
2017. Among the private schools, 165,800 were this point has been mainly supported by foreign
kindergartens which took care of nearly 26.4 brands with a minority coming from the US (Atack).
million children in 2017, according to the report
(Xinhua, Growth in Private Schools). In China, Tutoring and Extracurricular Activi-
three different varieties of private education are ties
flourishing. Most of the private schools that now
educate 10 percent of Chinese 6- to 18-year-olds Amid China’s economic downturn, its booming
are gaokao mills, which drill their students for the education industry has become a bright spark in
all-important end-of-school exam. But 10 percent the gloom thanks to surging demand for after
of those private establishments are bilingual school learning, resulting in an influx of capital.
schools which prepare students for a university Within the rapidly expanding private education
education abroad. sector, the fastest growth comes from after-school
tutoring as Chinese parents have no qualms about
A large increase of 228 new international spending on such programs to help their children.
schools opening in China over the past five years Such recession-proof spending on education is a
bringing the total to 857. The ownership of the new component of the broader services industry that
schools has also hiked the number of Chinese- Beijing is counting on to offset the economic blow
owned private schools offering an international
368
firms from buying private kindergartens via share education to 563. The new guidelines provide
sales or by cash. The move could roil a private greater clarity for foreign schools and suppliers
education market estimated to be worth $260 wishing to benefit from China’s expanding private
billion and which has been forecast to see deals education market. However, investment in schools
worth billions of dollars in 2019. The move by accessible to Chinese children is only possible
Beijing is the latest regulatory crackdown to rattle by Chinese investors, with the contracting of
investors, following its moves to rein in sectors foreign independent school brands via service
from online lending to gaming (Jourdan). China will agreements. A 64 percent increase in the five years
explore the establishment of a third-party quality to 2018 mean the latest figures revealed 245,500
accreditation and evaluation system for private students enrolled in international private K-12
schools, according to the Ministry of Education. education in China. Private education expenditure
Applying the evaluation results, private schools has risen among Chinese families, a result of a
will be guided to better serve social needs and growth in [China-wide] prosperity. It is unclear
deepen reform. The government supports high- how this may be affected by a recent economic
level private schools with distinctive characteristics levelling-off, and the ongoing ‘trade war’ with the
to cultivate their own disciplines, majors, courses, US, though some have speculated it is already
teachers, and management system to improve the affecting higher education. There is sufficient
overall quality of education, according to the plan. demand by enough wealthy Chinese parents in
Meanwhile, the country will promote the building China for an international style of education for
of a social credit system for private education. their children, that the market is expected to
Measures include improving the incentives and expand at pace, regardless of economic influence.
disciplinary mechanisms for education credit, Another growth factor is Beijing’s amended “two-
exploring a credit archive system, enhancing child” policy, as well as an increased awareness
information disclosure, and strengthening social among Chinese parents of the benefits of
supervision (Xinhua, Third Party Evaluations). international education, and the recent moves
to make it easier for foreign investors to run
That being said, the number of private schools schools in China. A Chinese curriculum, integrated
in China reached 183,500 in 2018, an increase with some international modules and language
of 5,815 over the previous year, official statistics teaching that retains local culture and history,
showed. Private schools accounted for 35.36 while introducing international elements to
percent of the total schools in the country. prepare children for global higher education is
There were 53.78 million students studying in what many parents desire. Despite the growth in
private schools in 2018, up 5.03 percent from Chinese-owned international schools, growth to
2017. Among the private schools, 165,800 were this point has been mainly supported by foreign
kindergartens which took care of nearly 26.4 brands with a minority coming from the US (Atack).
million children in 2017, according to the report
(Xinhua, Growth in Private Schools). In China, Tutoring and Extracurricular Activi-
three different varieties of private education are ties
flourishing. Most of the private schools that now
educate 10 percent of Chinese 6- to 18-year-olds Amid China’s economic downturn, its booming
are gaokao mills, which drill their students for the education industry has become a bright spark in
all-important end-of-school exam. But 10 percent the gloom thanks to surging demand for after
of those private establishments are bilingual school learning, resulting in an influx of capital.
schools which prepare students for a university Within the rapidly expanding private education
education abroad. sector, the fastest growth comes from after-school
tutoring as Chinese parents have no qualms about
A large increase of 228 new international spending on such programs to help their children.
schools opening in China over the past five years Such recession-proof spending on education is a
bringing the total to 857. The ownership of the new component of the broader services industry that
schools has also hiked the number of Chinese- Beijing is counting on to offset the economic blow
owned private schools offering an international
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