• Ernie Diaz

The Class is Half Full

Chinese students are back in class (mostly), but China is still backing online education as the way forward, a cornerstone of the CCP’s vow to ‘completely modernize’ its education system by 2035.

Secondary shares of online education unicorn Yuanfudao are going faster than free samples at the Shanghai Costco. Bytedance, Tencent, and other tech empires are throwing billions at digital learning platforms, and the resources necessary to make them profitable, at some point.

“This whole online learning gold rush is definitely bigger than the COVID crisis,” explains Jimmie Jeremejev. “It’s seen as a way to solve a lot of the problems that China faces in its quest to bring quality education to a much broader base of students, to scale and distribute resources.”

As may be expected, opportunity abounds for foreign companies with content to license, brands to build, and software to integrate.

“We’re seeing the usual spate of foreign companies who can profit from China’s latest hot industry, but with the usual concerns over infringement,” says Edward Lehman. “Fortunately, the players are high-profile unicorns with transparent platforms, as opposed to fly-by-night academies xeroxing and distributing books without royalties. The terrain should be much more familiar to international education companies.”

1 view0 comments

Recent Posts

See All

Too Big to Bail

We'd like to bear witness against the notion that Chinese giants are simply propped up by their government when they stumble. Sure, China's central bank and regulatory bodies shut Anbang down a few ye

Schools & Regulations

First they came for the tech companies, and we did not speak, for cybersecurity and monopolies are a thing. Next they came for the listed education companies, and we did not speak, for anyone in China

Free Money

It's just the same as with your therapist: the more you open up, the harder it is to stop. Opening up the economy led to 9%= GDP growth for decades, a golden era of prosperity. Anyone grateful? Nope.