China tech crackdown: at least 25 large online tutoring firms closed up shop in 2021
- Of the companies that disappeared, nearly half were located in Beijing, according to recent 100EC report
- Surviving operators are scrambling to pivot towards vocational training and non-curriculum classes, such as chess and music
At least 25 large Chinese online education firms closed up shop in 2021 after the government banned for-profit private tutoring, according to data compiled by Chinese research firm 100EC.
Of the companies that disappeared – including firms that saw their founders disappear and those that filed for bankruptcy – nearly half were located in Beijing, according to a recent 100EC report.
27-year-old Juren Education, one of China’s oldest tutoring companies, and 16-year-old Wall Street English, one of the world’s largest English-language tutors with 3 million alumni and annual enrolments of 180,000 students, were among of the biggest names that closed for business in China last year, following the crackdown.
Two of the tutors, ABC 360 and Landi English, were both owned by Hangzhou Danyue. The police bureau in Hangzhou, capital of eastern Zhejiang province, announced in late August that it had detained the founder of Hangzhou Danyue over “embezzlement” charges.
China’s crackdown on for-profit tutoring for primary and middle school students led to massive lay-offs and closures in the sector in 2021.
Those companies that have survived to carry on with other lines of business have suffered heavy losses in market value and revenue.