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Education

China cram schools drop core tutoring programs amid crackdown

New Oriental and TAL shift focus from children to lifelong learning

A primary school classroom in Wuhan: The tutoring business for children accounts for a majority of revenue at both New Oriental and TAL.   © Reuters

DALIAN, China -- As Beijing's sweeping new ban on for-profit tutoring and test-preparation services takes hold, two publicly traded industry leaders will shut down their mainstay operations and look elsewhere to stay afloat.

New Oriental Education & Technology Group announced plans Monday to halt by year-end its tutoring business for students from kindergarten to grade 9. The operation, which includes such core subjects as Chinese and math for China's nine-year compulsory education, generated "approximately 50% to 60%" of the company's revenues for each of the past two fiscal years, New Oriental said in a news release.

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