China's Quiet Revival: Tutoring Sector Rebounds Amid Regulatory Ease

As China seeks to boost its economy, the government is subtly relaxing its regulatory grip on the private tutoring industry. This shift revives a once-billion-dollar sector that faced strict crackdowns, leading to job losses and significant market value depreciation. Industry leaders note increased growth and operational freedom for tutoring companies.

China is subtly easing its regulatory pressure on the private tutoring industry in an effort to revive the economy, industry sources and analysts told Reuters. There has been no formal policy announcement, but tacit approval from Beijing suggests a shift to support job creation and business growth.

This easing traces back to a government crackdown in 2021 under the 'double reduction' policy, which heavily restricted for-profit tutoring in core subjects. The policy aimed to reduce educational stress on families but significantly impacted firms like New Oriental Education & Technology Group, resulting in market devaluation and job losses.

Executives in the tutorial sector, who requested anonymity, confirmed signs of relaxation in policy enforcement. This coincides with Beijing's efforts to spark economic growth, including incorporating education services in a broad consumption boost plan revealed in August, which has since resulted in increased stock values for education companies.

(With inputs from agencies.)