China Tightens Ownership of Private Schools by Foreign Entities

UMMATIMES - China's State Council announced a new law that stops teaching foreign curricula in schools from kindergarten to ninth grade (K-9). China's State Council also prohibits foreign entity ownership or control of private K-9 schools.

The law will take effect on September 1. The issuance of this law is the latest in a series of actions taken by Beijing to tighten control over the education sector. China currently has private K-9 schools that teach both local and foreign curricula.

According to the Private Education Promotion Law published on Friday (14/5) on government websites, members of the board of directors or other decision-making bodies at private K-9 schools must be Chinese nationals. They must also include representatives from regulators.

China made new rules to suppress the booming private tutoring industry. This rule aims to reduce pressure on school children and increase the country's birth rate by lowering the cost of living for families.

The new law is stricter than expected for compulsory education (K-9 schools), especially in banning total related party transactions. Meanwhile, private K-9 schools cannot be controlled by agreement.

Under the new law, private K-9 schools cannot hold entrance tests and cannot recruit beforehand. In addition, public K-9 schools cannot establish private schools or turn into private schools.