The collapse of e-learning in China and the reason?
Beijing (Forbes) – 08/06/2021 . 14:57
China deals a severe blow with billions of dollars to the e-learning sector
The Chinese government has caused the collapse of an online education business worth billions of dollars, according to the American “Forbes” magazine.
The magazine stated that the reason for this collapse came after a ban was imposed on the largest companies that created an empire for private education in China over several years.
And local sources said that the regulatory bodies in China I decided to cancel online education services, which caused these institutions to lose about 27 billion dollars in just a few months.
As a result of this decision, the largest national companies related to education, namely “Gaotu”, “TAL Education” and “New Oriental Education & Technology”, collapsed.
Gaotu lost 90% of its value due to the government ban, and about a year and a half ago, the capital of Larry Xiang Dongchen, the owner of Gaotu, fell from $16.5 billion to only $1.6 billion.
The “TAL Education” company, which specializes in teaching services for primary and secondary students, lost more than 60 percent of its value during the same period, while its owner lost $2.1 billion due to the measures taken by the Chinese authorities against them.
This step that eliminated these companies came after the Chinese President, Xi Jinping, called for alleviating the additional burden on schoolchildren, by restricting private lessons for all educational groups, according to local sources.