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China’s $100 billion a year tutoring industry may soon be forced to go “non-profit” amid growing concerns about escalating costs.
Bloomberg writes that the CCP is now targeting expensive, in-demand private tutors that have become increasingly popular, in part, due to the country’s “one-child” policy.
Since 1980, authorities have used drastic means to limit its population. Under the “one-child policy,” many couples were only allowed one child and those found in violation often faced enormous fines, forced abortion and sterilization. (Story continues below.) The education industry has exploded, in part, because families have focused all their energy and resources on one child…with the Chinese tutoring industry now worth an estimated $100 billion. A $100 Billion Chinese Tutoring Industry
After-school tutoring is an integral part of middle-class life in China. Parents spend thousands of dollars per year to ensure that their children have the best shot at success.
The push for excellent grades and outstanding test scores is done to help ensure access to elite universities. Many families see tutoring as a way to gain an edge in the ultra-competitive race for university admission.
As a result, tutoring has become a booming business with some couples spending up to $16,000 per year on various tutoring programs, foreign language and music lessons for their children.
Taken at face value, these services make the cost associated with raising children substantially higher — which is what concerns the Chinese government, especially in light of its efforts to improve its gender demographics and encourage families to have more than one child. Correcting a Gender Imbalance
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After a massive cultural campaign to promote small families, China is struggling with low birth rates. The country is facing a labor shortage, a gender imbalance, and a collapsing social security system.
In 2020, there were 35 million more males than females in China. The gender imbalance will worsen the catastrophic demographic outlook. Meanwhile, according to a 2019 study, the largest Chinese pension fund is set to collapse in 2035.The problem is so evident that alarms were set even among the officials of the Chinese Communist Party. The ruling party has since […]
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