China’s Ministry of Education has given after-school tutoring institutions until the end of the year to register as nonprofit entities, reports Caixin. The announcement published on Tuesday confirms that Beijing’s municipal education commission had instructed executives of leading tutoring companies to reorganize their business models and become nonprofits by the end of this year.
According to Caixin’s sources, these companies were told they could shift to senior high school tutoring, vocational training, lifelong education and other areas.
Such institutions may not enroll new students or collect tuition fees until their registration as nonprofit entities has been completed, according to the notice released by the Ministry of Education, Ministry of Civil Affairs and State Administration for Market Regulation.
China launched a sweeping overhaul of its private education sector in July, aiming to reduce the burdens of homework and after-school tutoring on students, as well as financial pressures on parents.