THE BUSINESS OF EDUCATION IN CHINA

The Business of Education in China

Demographics alone make education a growing market. The two-child policy introduced in 2015 will continue to boost the number of students in need of preschool education, nine-year compulsory education and higher education. Government policies are also supportive of market growth. As outlined by the State Council, the 13^th Five-Year Plan articulates many initiatives relating to education, including advancing international education co-operation, encouraging private companies to set up schools, and focusing on online training.

A report from Deloitte suggests that favourable policies, capital inflow, cross-sector business opportunities and technical innovation are contributing to what it calls a “golden age” in China’s education industry.

Many Chinese are looking less favourably on traditional educational approaches of rote-learning and emphasis on test results. This makes them more interested in child-centred educational programs that promote critical thinking, communication and well-rounded skill development. In turn, that’s led to the popularity of private schools offering an international curriculum and opportunities for foreign investment.

Areas of Growth

Early childhood education is a quickly growing market. With the two-child policy, there are simply more preschoolers, and policy directions from the 13^th Five-Year Plan for inclusive preschool education by 2020 support the expansion of this market segment.

Schools that offer international curricula are held in high regard, yet their small numbers (representing only 0.28% of all private schools^[1]) represent opportunities for significant growth. The Asia-Pacific Foundation of Canada says these schools are growing at an annual rate of over 40% and that they are “arguably the most fertile soil as a format for setting up Canadian international schools in China.”

Professional and corporate training are also growth areas, as is vocational training stemming from Belt and Road initiatives that require workers with up-to-date skills. English language training is always in demand.

Opportunities for Canadian Organizations

A Deloitte report proposes six main models by which foreign investors can gain access to China’s education market, including education resource development (such as textbooks), online education, institutional investment (such as in training), franchises (generally in early childhood education or English training) , Chinese-foreign cooperative education (such as New York University Shanghai) or self-built schools.

Chinese students who come to Canada to study offer opportunities for Canadian-based K-12 schools, colleges and universities. In 2017, there were 494,525 international students at all levels in Canada, with students from China accounting for 140,530 (or 28%) of the total.^[2]

March, 2019

^[1] Asia Pacific Foundation of Canada, Offering International Schools in China: Opportunities and Challenges for Canadians, December 2017

^[2] Canadian Bureau for International Education, International Students in Canada, August 2018.