China education crackdown teaches online tutors a harsh lesson

Tougher oversight in store for edtech sector that boomed during pandemic

20210624 Online Education

A child in Shanghai uses the mobile app of Yuanfudao. China plans to introduce more oversight of online education. © Getty Images

CK TAN, Nikkei staff writer

SHANGHAI -- China is tightening the screws on after-school education operators blamed for intensifying already cutthroat competition among students and adding to parents' financial burdens.

If implemented, stricter regulations, including requirements for Chinese Communist Party involvement, may affect an array of investors who have poured money into the sector, including Alibaba Group Holding and Japan's SoftBank Group.

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