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China’s Crackdown on Ed Tech May Have Little Effect on U.S. China’s new restrictions to keep educational technology companies out of capital markets threaten to curtail tutoring and other industries, but experts say the changes may have little effect on the U.S. market. August 02, 2021 •  Share prices in China’s for-profit education market plunged last week after officials in Beijing announced broad restrictions to its booming private tutoring sector, sending shockwaves through an industry that had been riding a wave of demand for digital learning services during the pandemic. According to the new regulations, companies and institutions that teach school curriculums can no longer be for-profit, accept foreign investments or offer tutoring services for core subjects outside of school hours, and foreign entities can’t hold shares in such institutions.

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