Ultimatum for Private Education Providers in China
By 1st September of this year, all Chinese private education providers must choose between a status of “for profit” or “not-for-profit”. Due to historical reasons, many private education providers are formed with mixed asset ownership and unclear brand ownership, which can be confusing for outsiders and is unsuitable for further investment and growth.
It has been reported that non-degree providers are most likely to select “for profit” status while degree providers will probably opt for “not-for-profit” to position themselves for better policy support and preferential financial aid treatment. A clarification of status is also expected to close the gap in staff social welfare between the public and private education sectors, as well as to increase the transparency of government funding and pricing.