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The current situation and trends in the Chinese Education Industry

Chinese Education Industry


In China, most of the population can go to school. That is, according to Professor Hou Wuqiang, the key to the success of the educational system in that country. Wuqiang, a professor at the University of Harbin (China), and official envoy of that Government for the teaching of the Chinese language at the National University of Colombia assured that this high coverage is due to the fact that the Chinese Government makes a large investment in education.

The teacher gave a talk about education in his country in the last session of the China Chair, an initiative of the Institute of Political Studies and International Relations (Iepri) of the UN, the Chinese People’s Embassy, and the China Center to create a knowledge space on different aspects of this Asian country.

There, primary education begins at age 6 and lasts 5. They have around 400,000 primary schools with approximately 100 million students. The first nine years of education are free and compulsory. High school, which lasts three years, is optional and students generally have to pay 3,000 yuan a year youtube.

Hou Wuqiang indicated that most of the schools in China are public and that they have three thousand higher education institutions (two-thirds of these are public) and that most of the most prestigious universities are public as well.

For Wuqiang, studying at university is much cheaper in China than in many countries. He is the third teacher that the Chinese Government has sent to the UN to teach Mandarin Chinese. The first teacher arrived in 2004, thanks to an agreement between the National University and the Ministry of Education of China.

Education is divided into preschool education, primary education, secondary education, higher education and university education. In China, there are numerous universities, it has the largest number of university students in the world. Some universities have master’s and doctoral education.

Primary education:

In most of China, primary education lasts 6 years, but in some provinces, primary education lasts 5 years. Generally, grades one through three are considered “basic” and grades four through six are considered “superior.” In these six years, students have to study many subjects: ideology and morals, ideology and social, Chinese language, mathematics, English, physical education, science, music, fine arts, computer science. But in reality, there is no common exam for primary education, except for the Chinese language, mathematics and English.

Secondary education:

The cost for low-income farmers is very high, and it caused some rural students to go to work as soon as they finished their primary studies (this was a big problem in the 1990s by the low level of the economy, in the 21st century, the government increased financial investment, and the situation improved). In legal terms, all of this is not allowed, but regional governments do not have enough tax support, so there is no effective way to solve the problem.

Higher education:

High school graduates can continue to higher education to prepare for college entrance; They may also decide to pursue a professional education, graduates can start their professional life or decide to go to higher school. In professional education there are several specialties, in rural areas there are schools that are especially dedicated to agriculture or livestock and veterinary medicine, in urban areas, the schools have a complex of specialties such as computer science, commerce, etc.

The trends:

Today, China’s educational ecosystem is dominated by private players and kindergartens are a dominant part of it. Last year China’s education industry reached an estimated market value of 2.9 trillion Yuan.

From a geographical point of view, East China’s domination is still there. However, there is an increasing outflow of Chinese students abroad. The United States, Australia, Canada and the United Kingdom are the 4 countries with the largest Chinese student population outside of China.

In this era of the Internet, Internet giants are starting to penetrate deeper into this sector, especially because of the COVID-19 pandemic, online teaching platforms were made mandatory in several regions, especially those around Wuhan.

From an investment point of view?

There has been a sharp increase in the value and volume of VC / PE investment, accompanied by an increase in the value of the M&A agreement. In short, China’s education industry has begun to access the capital market, strengthening the foundation that has been laid by private education institutions several years ago. The invested capital does not only come from within the country but also from abroad.

Broadly speaking there is a two-way flow; one is what brings Chinese students to study abroad, and the other, which brings in foreign investment, funding many private educational establishments in China.

Source: DeloitteGMA 

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