Overview of China's education policy
China's education system is mainly divided into: compulsory education stage and higher education stage
(1) Preschool education, compulsory education and related training: restrictive policies ▪ The Regulations on the Implementation of the Promotion Law of Private Education, revised in April 2021, stipulates that for-profit private schools for compulsory education shall not be established. At the same time, private schools of compulsory education are expressly prohibited from conducting related party transactions, and private schools of preschool and compulsory education are prohibited from controlling private schools through merger and acquisition, agreement control and other means (preventing the VIE listing structure of preschool and compulsory education).
▪ On July 24, 2021, the state issued the Opinions on Further Reducing the Student's Work Burden and Off campus Training Burden in Compulsory Education, and the existing discipline training institutions were uniformly registered as non-profit; Disciplinary training institutions shall not be listed for financing and shall not be capitalized.
(2) Higher Education: Encouraging Policy ▪ Although the Regulations on the Implementation of the Promotion Law of Private Education stipulates that for-profit private schools for compulsory education shall not be established, it means that the organizers of private schools other than primary schools and junior middle schools can choose to run for-profit schools.
▪ On April 20, 2022, the amendment of the Vocational Education Law of the People's Republic of China was passed to encourage the development of vocational education at various levels and in various forms, and support the equal participation of society in vocational education. This revision emphasizes the main role of enterprises in vocational education. It is the first time to clearly put forward that enterprises are important school running subjects of vocational education, promote enterprises to deeply participate in vocational education, and encourage enterprises to hold high-quality vocational education, including vocational schools and vocational training institutions.
